Matador Technologies Adds Bitcoin to Treasury Amid Diversification

Canadian crypto firm Matador Technologies announced a major shift in its capital preservation strategy this week after its Board of Directors unanimously approved the addition of Bitcoin and USD-denominated assets to its corporate treasury.

The purpose of this decision is to mitigate the risks associated with the company’s reliance on Canadian dollar-denominated assets, which marks a fundamental step towards diversifying its reserves.

Matador embraces Bitcoin

Citing concerns about Canada’s reliance on oil exports and rising national debt, Matador highlighted the potential devaluation and loss of purchasing power of the Canadian dollar as key motivators. As part of its strategy, the company will make an initial allocation of $4.5 million to Bitcoin in December 2024. It will also consider further acquisitions through measured purchase programs. The company also plans to transition most of its cash reserves from CAD to USD.

Matador expressed confidence in Bitcoin’s role as a long-term store of value, especially as institutional interest in the cryptocurrency continues to increase worldwide. The move also aligns with a growing trend among companies seeking to hedge against currency debasement and explore alternatives to traditional financial assets such as bonds.

The latest move is also expected to boost Matador’s digital gold platform, which will allow users to trade digital gold backed by reserves at the Royal Canadian Mint. The Board chose Bitcoin over alternatives because of its stability, security and growing use by institutions, making it the strongest foundation for the project, the company said in a statement.

Following the development, Matador President Sunny Ray commented:

“Matador’s board and management believe in using Bitcoin to prepare our treasury for the future. This step also supports our mission to explore the use of Bitcoin as a platform for our gold-based products “.

Bitcoin adoption boom

Companies like MicroStrategy, Metaplanet and more have increased their stakes in Bitcoin, while others have recently joined the growing trend.

New research revealed that institutional adoption of Bitcoin has grown significantly. As reported, BTC holdings rose to 31% of the total supply. MicroStrategy leads with 440,000 BTC, worth over $46 billion. Meanwhile, ETFs have attracted large inflows, while the US, China and El Salvador hold substantial reserves. Together, governments hold 2.45% of Bitcoin circulation, which is almost $49.36 billion.

Additionally, several states in the United States, including Ohio, Pennsylvania, and Texas, are exploring Bitcoin reserves as a strategy to safeguard public funds and adapt to modern financial innovations.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!