Matador Technologies, a Canadian blockchain company, has made a big bet on its financial future by adding bitcoin to its corporate treasury. The Board of Directors recently approved a $4.5 million bitcoin purchase, citing Bitcoin’s role as a hedge against economic risks.
Matador Technologies Inc. is a financial technology company active in Canada. The Company is known for its innovations in building products on top of the bitcoin network, and focuses on digitizing real world assets like gold.
This initiative comes on the heels of growing concerns about the Canadian economy and the Canadian dollar (CAD). Canada, an oil exporting nation, has a growing national debt which could lead to devaluation and reduced purchasing power for assets denominated in CAD.
Matador’s President, Sunny Ray, says:
“Matador’s Board and management believe in using Bitcoin to future-proof our treasury. This step also supports our mission to explore using Bitcoin as a platform for our gold-based products.”
To mitigate these risks Matador will be moving most of its cash reserves from CAD to United States dollar (USD) and bitcoin. Matador believes Bitcoin’s deep liquidity, security and growing institutional adoption makes it a great store of value in uncertain economic times.
Related: BlackRock Says Bitcoin is “A Hedge Against Global Financial Disorder”
Matador isn’t just using bitcoin as a reserve asset; it’s also making it the base of its upcoming digital gold platform.
Matador is building a blockchain based system that will allow users to buy, sell and store digital gold. The physical gold backing these digital assets will be held at the Royal Canadian Mint, a government owned corporation.
Matador’s leadership says the platform will launch in early 2025. The goal is to combine the stability of physical gold with the flexibility of digital assets.
“For Matador’s focus on creating a product that exemplifies trust, permanence, and value, we expect Bitcoin to be the platform of choice,” says Deven Soni, Matador’s CEO.
After evaluating other blockchains like Ethereum and Solana, Matador chose Bitcoin for its secure and reliable network. This shows Matador’s commitment to building a trustworthy product that aligns with their broader vision of financial innovation.
Matador is following a growing trend among corporations worldwide to add bitcoin to their treasury reserves. Companies like MicroStrategy and Tesla have set the stage for this.
MicroStrategy has accumulated over 444,000 bitcoin because they believe in the long term value of the scarce digital asset.
Despite being a small company with a market cap of $49.5 million, Matador is making big waves in the corporate world by joining the Bitcoin bandwagon. This is similar to Japanese investment firm Metaplanet which, started small, and now has $171 million in bitcoin reserves.
In the next few months Matador will be starting its bitcoin acquisition. They will also be evaluating the technology platform for the digital gold product. A decision will be made by Q1 2025 and the platform will launch shortly after.
Matador’s decision to go with Bitcoin is a sign of their forward thinking approach to treasury and product development. Sunny Ray described it as a way to innovate and build trust in financial products, not just secure the company’s position.
Now that the company has Bitcoin as a foundation, Matador eyes becoming a leader in the space of blockchain and traditional asset management.
