Canadian fintech company Matador Technologies, which focuses entirely on Bitcoin, has been approved to raise new capital. The approval should help the company to further develop its Bitcoin strategy and strengthen its position on the market.
The Ontario Securities Commission has approved a so-called shelf prospectus. This allows Matador to raise up to 80 million Canadian dollars in a period of 25 months, equivalent to approximately 58.4 million US dollars. The company can decide when and how it raises this capital, depending on market conditions.
What does the approval actually entail?
With a shelf prospectus, Matador can raise financing flexibly. The company may, among other things, issue new shares, issue debt securities or use other financial instruments. This approach gives Matador the space to respond quickly to opportunities in the market.
The funds raised are mainly intended to further expand the company’s Bitcoin reserves.
Bitcoin per share central to strategy
According to CEO Deven Soni, the strategy is not just about growth, but above all about long-term value. The company wants to increase the amount of Bitcoin per share so that shareholders indirectly benefit from a larger Bitcoin position on the balance sheet.
Currently, Matador owns 175 Bitcoin, with an estimated value of approximately $15.3 million. This makes the company one of the largest corporate Bitcoin holders worldwide, according to data from BitcoinTreasuries.net.
Ambitious goals towards 2026 and 2027
Matador has formulated clear goals for the coming years. The company wants to have 1,000 Bitcoin by the end of 2026. After that, growth should accelerate, with the goal of 6,000 Bitcoin by the end of 2027.
In the long term, Matador looks even further ahead. The company has stated that it ultimately wants to own 1 percent of the total fixed Bitcoin supply. That amounts to approximately 210,000 Bitcoin. So far, only Michael Saylor’s American company Strategy has managed to reach this limit.
Risks of a Bitcoin Business Strategy
More and more companies are adding Bitcoin to their reserves, but this strategy also comes with risks. In previous market cycles, the stock prices of several companies fell as the crypto market cooled. Some businesses even had to sell Bitcoin to meet financial obligations.
For example, semiconductor company Sequans sold 970 Bitcoin in early November to pay off outstanding debts. In doing so, it distanced itself from its previous plans to collect Bitcoin on a large scale.
Matador is also betting on Bitcoin services
In addition to building up its own Bitcoin reserve, Matador also develops products that allow traditional banks and financial institutions to offer Bitcoin services. The company aims to bridge the gap between the traditional financial world and digital assets.
On December 23, 2024, Matador officially adopted a Bitcoin treasury strategy. With the new approval from the regulator, the company now has additional financial space to further implement these plans.
With this step, Matador Technologies underlines its ambition to position itself as a long-term player within the Bitcoin market, with a clear focus on growth, flexibility and value creation.
Source: https://newsbit.nl/matador-technologies-krijgt-toestemming-om-tot-80-miljoen-dollar-op-te-halen-voor-bitcoin-strategie/
