Whether the leather is any good for sheath making depends on what type of sheath you wish to make, and the thickness of the leather. If it's thick enough but too soft for your liking you could try soaking a piece for a short while (10 mins or so) in hot (NOT boiling) water, then drying it slowly compressed between two boards of MDF. Plain MDF is good for this as it is nice and absorbent, wicking the moisture out of the leather whilst keeping it flat. A couple of days in the airing cupboard should do it, then remove boards and let air-dry thoroughly before starting work. This will usually stiffen leather up nicely, but it may begin to soften again as you flex and bend it whilst making the item.
Others who know more about leather than I do may know a better way, but this method has worked for me in the past, so may well be worth you trying on an odd scrap or offcut before committing the piece you want to make the sheath from.