Cathedra Bitcoin Inc. has unveiled a non-brokered private placement aimed at raising up to C$2.5 million ($1.85 million). The funds will be used for bitcoin purchases, infrastructure expansion, and general corporate needs.
Cathedra Bitcoin’s Bold Private Raise
Cathedra (TSX-V: CBIT; OTC: CBTTF) has recently shifted its focus away from bitcoin mining, opting to prioritize bitcoin acquisition and digital infrastructure development, much like Microstrategy’s approach. This non-brokered private placement, known as a LIFE (Listed Issuer Financing Exemption) offering, includes 25 million units priced at C$0.10 each.
Each unit in the offering features one subordinate voting share and one share purchase warrant. These warrants come with a five-year expiration period and have tiered exercise prices between C$0.12 and C$0.20. The company also holds the right to expand the offering by an additional C$2.5 million under the same terms.
Proceeds will support infrastructure growth, bitcoin purchases, and general company activities. The offering is slated to close on or around Oct. 9, 2024, pending regulatory clearance. Cathedra also mentioned the possibility of paying a commission to finders who bring subscribers into the offering.
Cathedra’s move follows Microstrategy’s recent billion-dollar private sale, alongside several mining firms that have conducted stock sales to fortify their operations. Bitcoin miners have faced challenges with significant revenue drops since the fourth Bitcoin halving. Private sales, along with a pivot toward AI-driven data services, have given these firms a much-needed boost.
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