KEY FACT: Matador Technologies Inc., a blockchain-focused firm specializing in digitizing real-world assets like gold, has plans to diversify its treasury holdings by investing $4.5 million in Bitcoin (BTC) and converting the majority of its cash reserves from Canadian to U.S. dollars. Approved by the board on December 23, this decision is driven by concerns over Canada's economic reliance on oil exports and increasing national debt, which could devalue Canadian assets. Matador views Bitcoin as a strategic tool to "future-proof" its treasury and in line with its upcoming digital gold platform launch, to enable tokenized gold trading backed by physical reserves. This move follows similar treasury diversification strategies by companies like Quantum BioPharma, Jiva Technologies, and Rumble, reflecting a broader trend toward adopting Bitcoin as a hedge against economic uncertainty. The platform is expected to launch in early 2025.
Source: Matador
Matador Technologies Diversifies Treasury with $4.5M Bitcoin Investment
Matador Technologies, a Canadian firm specializing in gold tokenization, has announced plans to diversify its treasury by incorporating Bitcoin (BTC) and U.S. dollar-denominated assets. The company's board of directors unanimously approved this strategy on December 23, citing concerns over the Canadian dollar's stability.
Matador Technologies Inc. (“Matador” or the “Company”) (TSXV: MATA) is proud to announce that its Board of Directors has unanimously approved adding Bitcoin and USD-denominated assets to its corporate treasury as part of its long-term capital preservation strategy...Matador plans to front-load an initial allocation of $4.5 million into Bitcoin in the month of December 2024 and will continue to explore additional purchases at the board level via measured buying programs.
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Previously, Matador's treasury was primarily held in Canadian dollars. However, concerns have arisen due to Canada's economic reliance on oil exports and increasing national debt, which could lead to currency devaluation and diminished purchasing power. To mitigate these risks, the firm intends to make an initial Bitcoin investment of $4.5 million in December and will consider additional purchases through measured buying programs. Additionally, Matador plans to convert the majority of its cash reserves from Canadian dollars to U.S. dollars.
After evaluating various platforms, including Ethereum and Solana, the Board concluded that Bitcoin offers superior security, stability, and trustworthiness necessary for a digital gold asset platform. Bitcoin's deep liquidity and widespread institutional acceptance further reinforce its suitability as the foundation for Matador's digital gold platform.
Sunny Ray, President of Matador, stated that the company views Bitcoin as a means to "future-proof our treasury," in line with its mission to utilize Bitcoin as a platform for its gold-based products. This move is expected to support the development and launch of Matador's digital gold platform in the coming year. The platform aims to enable users to buy, trade, and store tokenized gold backed by physical reserves.
Matador joins a growing list of companies adopting Bitcoin as a strategic reserve asset. On December 20, biopharmaceutical company Quantum BioPharma disclosed the purchase of $1 million worth of Bitcoin and other cryptocurrencies to diversify its treasury. Similarly, in late November, Canadian wellness firm Jiva Technologies approved a plan to add $1 million of Bitcoin to its treasury. Video-sharing platform Rumble also approved a strategy to allocate up to $20 million of its excess cash reserves to Bitcoin.
The Board plans to finalize its choice of technology platform for the digital gold product by the first quarter of 2025, with intentions to launch the product to a limited audience thereafter. Shareholders can anticipate further updates on the company's treasury execution and custody strategies in the coming weeks.
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