- Cathedra Bitcoin Inc. adopts Bitcoin as its primary treasury reserve, moving away from mining to focus on Bitcoin accumulation.
- Deutsche Digital Assets expands its Bitcoin ETP offerings, listing the DDA Bitcoin Macro ETP on Euronext Paris.
- The DDA Bitcoin Macro ETP is 100% backed by a basket of cryptocurrencies and held in cold storage with a total expense ratio of 2%.
Cathedra Bitcoin Inc. has officially adopted Bitcoin as its primary treasury reserve asset. The company believes Bitcoin will become a dominant global reserve. This is due to its unique monetary properties and the prevailing macroeconomic and geopolitical conditions.
Shift from Mining to Diversified Bitcoin Accumulation
Cathedra is formalizing its approach to transition away from bitcoin mining. This is as a result of its shareholders expressing that growth in Bitcoin share is a key performance metric.
The company stated that Bitcoin mining is unreliable at increasing shareholders’ Bitcoin per share. Notably, nine of the 10 largest publicly traded mining businesses now possess less Bitcoin per share than three years ago.
Cathedra Diversification Strategy
Cathedra intends to diversify its strategy by building and operating data centers. These operations provide more consistent cash flows and higher returns on capital. The recent merger with Kungsleden allows this change, with the goal of achieving considerable growth in Bitcoin per share.
To do this, Cathedra will use a variety of strategies. These include retaining Bitcoin from existing mining operations and obtaining Bitcoin through market transactions. Additionally, the company will use balance sheet assets to acquire extra Bitcoin. Furthermore, the company may use Bitcoin-linked derivatives to generate income, which will help to increase its Bitcoin holdings.
DDA expands Bitcoin ETP to Euronext Paris
In related news, Deutsche Digital Assets (DDA), a German crypto asset management, has increased its Bitcoin exchange-traded product (ETP) offerings. The DDA Bitcoin Macro ETP (BMAC) has been listed on Euronext Paris, following its original launch on Xetra, Deutsche Börse’s electronic trading platform.
According to the September 17 announcement, the ETP is 100% physically backed by a set of cryptocurrencies known as the Compass FT DDA Bitcoin Macro Allocation Index (DDAMACRO). The ETP is held in secure cold storage at Coinbase Custody International Ltd., a registered custodian, with a total expense ratio of 2%.
Cathedra Bitcoin Inc.’s strategic transition to Bitcoin as its principal treasury reserve asset demonstrates the company’s dedication to maximizing shareholder value. Simultaneously, the expansion of DDA’s Bitcoin ETP to Euronext Paris demonstrates the market’s growing acceptance of Bitcoin-backed financial instruments.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
