Cathedra Bitcoin Inc. announces a non-brokered private placement to raise C$2.5 million for bitcoin purchases, infrastructure growth, and corporate needs.
Bollywoodfever: Cathedra Bitcoin Inc. (TSX-V: CBIT; OTC: CBTTF) has announced a non-brokered private placement aimed at raising up to C$2.5 million (US$1.85 million).Â
This move is part of the company’s shift in strategy, focusing less on bitcoin mining and more on acquiring bitcoin and expanding its digital infrastructure.
Details of Cathedra’s Private Placement
The offering, known as a LIFE (Listed Issuer Financing Exemption), consists of 25 million units priced at C$0.10 each. Each unit includes one subordinate voting share and one share purchase warrant.
These warrants have a five-year expiration period and tiered exercise prices ranging from C$0.12 to C$0.20. Additionally, Cathedra reserves the right to expand the offering by an extra C$2.5 million under the same terms.
The funds raised will be used to purchase bitcoin, expand infrastructure, and cover general corporate needs.
The offering is expected to close around October 9, 2024, pending regulatory approval. Cathedra also mentioned that finders who help secure subscribers for the offering may be eligible for a commission.
Cathedra’s Shift in Focus
Cathedra Bitcoin’s strategy mirrors the approach taken by Microstrategy, moving from a focus on bitcoin mining to bitcoin acquisition and infrastructure development.
This shift comes as many bitcoin miners face declining revenues following the fourth Bitcoin halving.
In response, companies like Cathedra have turned to private sales to strengthen their financial standing and explore other digital opportunities.
By pivoting toward infrastructure growth and bitcoin purchases, Cathedra aims to solidify its position in the digital asset space, following in the footsteps of several mining firms that have conducted stock sales to bolster their operations.
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