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Matador Technologies to Leverage Bitcoin as Treasury Reserve Asset
Matador Technologies, a Canadian crypto firm, has announced that it will begin utilizing Bitcoin as a treasury reserve asset, with a $4.5 million purchase planned for later this month.
Platform Development
The company has been developing a platform built on top of Bitcoin’s network, which will enable users to purchase and trade digital representations of gold, according to a press release. The company is targeting a launch of “early 2025” for said platform.
Company Background
Matador, formerly known as Scaling Capital 1, began trading on the TSX Venture Exchange last week under its new name. Since its debut, its stock price has fallen 35% from a closing price of $0.90 to $0.58, as of this writing.
Industry Trends
Since software firm MicroStrategy began purchasing Bitcoin in 2020, major tech companies like Tesla have brought the asset onto their balance sheets. However, with firms like Microsoft declining to take that route, many companies following in MicroStrategy’s footsteps have been relatively small, with a market capitalization of $49.5 million, like Matador.
Future Plans
Matador plans to release a mobile application that lets users “buy, sell, and store gold 24/7,” according to a press release. The company has also said it plans to “build a significant portfolio of products” beyond the precious metal, according to its website.
Board of Directors
Matador said its Bitcoin-buying endeavors were unanimously approved by the company’s board of directors. As part of the move, Matador said it would shift the majority of its cash balances to the U.S. dollar, while ditching Canada’s official currency.
Platform Choice
The Canadian firm said it had assessed its platform’s viability on Ethereum and Solana, but chose Bitcoin for its secure and stable network at the end of the day. Matador added that physical gold reserves backing its digital representations will be held at the Royal Canadian Mint, a corporation owned solely by the Canadian government.
Quote
“Matador’s board and management believe in using Bitcoin to future-proof our treasury,” Matador President Sunny Ray said in a statement. “This step also supports our mission to explore using Bitcoin as a platform for our gold-based products.”
Comparison with Metaplanet
Among firms that have adopted Bitcoin this year, the Japanese investment firm Metaplanet has built up a $164 million stash since its first purchase in April, according to Bitcoin Treasuries. However, there is an overlap between Metaplanet and Matador beyond Bitcoin and starting with the letter M.
Board of Directors Overlap
Matador, Evans, and Metaplanet did not immediately respond to a request for comment from Decrypt.
Conclusion
Matador Technologies’ decision to leverage Bitcoin as a treasury reserve asset marks a significant move in the company’s development. With a platform built on top of Bitcoin’s network and a focus on gold-based products, Matador is poised for a successful launch in the coming months. As the company continues to grow, it will be interesting to see how it navigates the complexities of the cryptocurrency market.
FAQs
Q: What is Matador Technologies?
A: Matador Technologies is a Canadian crypto firm that is developing a platform built on top of Bitcoin’s network.
Q: What is the purpose of Matador’s platform?
A: The platform will enable users to purchase and trade digital representations of gold.
Q: When is Matador’s platform expected to launch?
A: Matador is targeting a launch of “early 2025” for its platform.
Q: Who is Matador’s President?
A: Matador’s President is Sunny Ray.
Q: What is the current market capitalization of Matador?
A: Matador’s market capitalization is $49.5 million.
