Matador Adds Bitcoin and USD to Treasury Strategy

Matador Technologies is changing its strategy by adding Bitcoin and USD assets to its treasury, in line with growing institutional adoption trends.

Canadian cryptocurrency company Matador Technologies Announce A major shift in capital preservation strategy. The company’s board of directors unanimously approved the addition of assets denominated in Bitcoin and US dollars to the company’s treasury.

Matador Technologies’ board of directors recognized the risks associated with its existing treasury, which was primarily in Canadian dollars (CAD). Canada is overly dependent on oil exports, and its national debt is increasing. All of this could cause the Canadian dollar to fall in value and lose purchasing power. However, the board decided to diversify the treasury Bitcoin And assets are denominated in US dollars to address these risks.

By December 2024, Matador is looking to invest $4.5 million in Bitcoin. A structured purchasing program is also something the company will explore further for potential purchases. Matador will also convert most of its cash balance from Canadian dollars to US dollars. This decision shows that after all, the company believes that Bitcoin is a store of value and helps diversify the risks caused by a decline in the value of the currency.

This reflects a growing trend around the world where Bitcoin is seeing increasing adoption. Today, many companies are looking for an alternative to weak bonds and currencies. This decision supports Matador’s goal of using Bitcoin for gold-based products, according to Sunny Ray, president of Matador.

Bitcoin adoption rises as Matador focuses on digital gold

He also contributes to the development of Matador’s digital gold platform. Users will be able to own, trade and store digital gold, backed by physical reserves at the Royal Canadian Mint on this platform. The board considered options of Ethereum and Solana but settled on Bitcoin because it had the security and stability required for the project.

Bitcoin is the perfect currency for a product built on trust and value,” said Devin Soni, CEO and Chairman of Matador. The company will continue to test platform alternatives and aims to have the platform technology selected in the first quarter of 2025. After that, Matador will open the Digital Gold product to a smaller audience.

It also comes at a time of increasing institutional adoption of Bitcoin. After the 2024 US elections, Bitcoin’s popularity skyrocketed. The use of Bitcoin increased after new President Donald Trump objected to it as a hedge against inflation. Accurate strategy and Meta Planet It was among the companies that increased its Bitcoin holdings. This trend has been embraced by many others as well. In turbulent economic times, Bitcoin is now front and center in corporate treasury strategies.