Matador Technologies plans to buy Bitcoins and become one of the largest holders of cryptocurrencies

Matador Technologies plans to buy Bitcoins and become one of the largest holders of cryptocurrencies

Canadian technology company Matador Technologies, which specializes in Bitcoin and blockchain solutions, has announced an ambitious plan to become one of the world's largest corporate holders of cryptocurrencies. It wants to accumulate up to 6,000 Bitcoins by 2027, which represents approximately 1% of the total supply of this digital currency. The move is part of their $656 million funding strategy to enable the company to accumulate Bitcoins faster and strengthen its position in the ecosystem.

Objectives and current situation

Currently, Matador owns approximately 77.4 BTC, which at the current price of around $118,244 per Bitcoin is equivalent to a value of roughly $9 million. As part of its long-term strategy, the company aims to accumulate 1% of the total Bitcoin supply, which would make it the 20th largest corporate holder of the cryptocurrency in the world. CEO Deven Soni states that their business is firmly built on Bitcoin as a core asset, with the new approach going beyond traditional treasury management to include infrastructure and operational components aligned with the Bitcoin ecosystem.

Financial strategy and funding

On July 14, the company filed a shelf prospectus worth 900 million Canadian dollars (US$656 million) to provide funding flexibility for a 25-month period. It plans to use a variety of financing methods, including an on-market equity offering, convertible financing, asset sales, Bitcoin-backed credit lines and strategic acquisitions and partnerships.

Following approval from Canada's TSX Venture Exchange, Matador now has the ability to use a hybrid business model that combines technology and investment activities, allowing it to fully execute its Bitcoin accumulation plan.

Composite flywheel strategy

Matador has implemented an innovative strategy called the "compound flywheel" that is based on four pillars: strategically accumulating Bitcoins while maximizing Bitcoins per share, generating treasury revenue through volatility capture and synthetic mining, building real-world applications for Bitcoin-denominated revenue, and supporting the ecosystem through partnerships with crypto infrastructure and DeFi projects.

"Our long-term plans for Bitcoin accumulation are designed to create stability for our balance sheet while reducing exposure to inflation risk," says Mark Moss, the company's chief visionary.

Market reaction and future outlook

Despite the ambitious plans, Matador's shares fell slightly in response to the announcement, down 4.65%, having risen approximately 37% since the beginning of the year. This decline may be a reaction to market uncertainties, but the company's long-term potential remains strong.

Significant trend in the industry

Matador is not the only company that is focusing on bitcoin holdings as part of its corporate strategy. Various public and private companies currently hold approximately 1.15 million BTC, representing a value of around $136 billion and roughly 6% of the total cryptocurrency supply. This trend reflects the growing interest in Bitcoin as a hedging asset and a means to protect against inflation.

Conclusion

Canadian company Matador Technologies' plan to purchase up to 6,000 Bitcoins by 2027 is a strong signal of the growing interest of companies in accumulating cryptocurrencies as a strategic asset. If they succeed in meeting their goals, they will strengthen their market position and contribute to the wider adoption of Bitcoin in the business world. The move also shows that companies are beginning to see Bitcoin not only as an investment opportunity, but also as a key part of their long-term stability and growth strategy.

*This is not an investment recommendation.

Coingarage team