Bitcoin Company’s Shares Perk Higher On Major Partnership News

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Monday, October 28, 2024

With a Donald Trump win looking more and more likely, shares of Bitcoin have been uptrending of late. Currently, Bitcoin is flirting with breaking through the key $70k level. This is an important area for the crypto currency, as the area between $70k and $73k is currently a major resistance level holding back the bulls from further significant gains.

With the crypto currency continuing its rally, a breakthrough of that key area looks likely in the not-too-distant future.  If that happens, the bullish narrative increases for crypto related publicly traded companies as well.

Today, news of a Bitcoin related partnership hit the newswires. Cathedra Bitcoin Inc. (TSX-Venture:CBIT) (OTC Pink: CBTTF), a bitcoin company that develops and operates digital infrastructure assets with the goal of maximizing its per-share bitcoin holdings, announced a new partnership with Compass Mining Inc., a leading provider of Bitcoin mining hardware, hosting, and services.

Under the partnership, Cathedra will host 10 megawatts of Compass Mining's equipment at one of Cathedra's data centers in Kentucky. As part of the partnership, Compass Mining will operate the site and pay pass-through power costs plus 50% of net profits (defined as net mining revenue less cost of power) to Cathedra in bitcoin. Cathedra and Compass Mining share the intent of expanding this partnership beyond the initial 10 megawatts to future sites, hosting machines for either Compass Mining or Compass Mining's customers.

At the time of this press release, Cathedra Bitcoin held approximately 44.5 bitcoin worth approximately US$3.0 million and amounting to approximately 5 satoshis (or "sats") per share.

Shares of CBIT were up over 6% in early trading on the news.

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