Canadian Company Matador Adds Bitcoin To Its Balance Sheet

Key Notes:

• Matador targets to reduce reliance on Canadian dollars by diversifying its treasury with Bitcoin and USD assets.
• The Board recognized the risks associated with holding a significant portion of its treasury in CAD, including the potential for devaluation stemming from national debt concerns.
• Bitcoin was chosen over Ethereum and Solana for its stability, security, and growing institutional adoption.

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Matador Shifts to Bitcoin to Hedge Against Currency Risk

Canadian company Matador Technologies Inc. (TSXV: MATA) has unveiled a significant initiative to bolster its corporate treasury by investing $4.5 million in Bitcoin. This strategic decision was prompted by the Board of Directors’ acknowledgment of the risks associated with maintaining a substantial portion of its treasury in Canadian dollars, particularly due to Canada’s reliance on oil exports and the escalating national debt, which could potentially lead to currency devaluation.

The allocation of Bitcoin is scheduled for December 2024, with future acquisitions under consideration through measured buying programs.

The company also intends to shift a significant portion of its cash balance sheet from CAD to USD, while also viewing BTC as a valuable store of value to safeguard against potential currency devaluation. This latest move by Matador with a growing global trend of corporations adding Bitcoin into their treasuries as a hedge against inflation and currency debasement.

“Matador’s Board and management believe in using Bitcoin to future-proof our treasury,” said Sunny Ray, President of Matador. “This step also supports our mission to explore using Bitcoin as a platform for our gold-based products.”

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Bitcoin’s Role in Securing Matador’s Financial Future and Product Development

The inclusion of BTC will accelerate the development and launch of the Matador gold platform, empowering users to own, trade, and store digital gold that is backed by physical reserves held at the Royal Canadian Mint.  These reserves will bolster product development, thereby enhancing investors’ confidence in the company’s treasury strategy.

The decision to select Bitcoin ahead of other digital assets was made after reviewing other platforms such as Ethereum and Solana. The deep liquidity of BTC and its growing adoption by top institutions make it a better choice than other digital assets, making it the best choice for Matador’s digital gold platform.

Matador’s CEO, Deven Soni, emphasized that Bitcoin is the optimal choice for their product, which emphasizes trust, permanence, and value. The Board will assess other technological options and determine by the first quarter of 2025 which platform will underpin its digital gold product. Following this, Matador intends to launch the product to a select audience while keeping shareholders updated on its treasury and custody plans.

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