Matador Technologies shifts strategy by adding Bitcoin and USD assets to its treasury, aligning with growing institutional adoption trends.
Canadian crypto firm Matador Technologies has announced a significant shift in its capital preservation strategy. The company’s Board of Directors unanimously approved adding Bitcoin and USD denominated assets to its corporate treasury.
The Board for Matador Technologies recognized risks associated with their current treasury, which was primarily in Canadian dollars (CAD). Canada is overly dependent on exports of oil, plus its national debt is increasing. All these could cause CAD devaluation and purchase power loss. The Board, however, decided to diversify the Treasury with Bitcoin and USD assets to address these risks.
By December 2024, Matador is looking to invest $4.5 million in Bitcoin. The structured buying program is also something the company is going to explore further for making potential purchases. Matador will also convert most of its cash balance from CAD to USD. This decision demonstrates that after all, the company believes Bitcoin is a store of value and helps to diversify away risks from currency debasement.
This mirrors the growing trend around the world where Bitcoin is experiencing growing adoption. Today, many corporations are looking for alternative to bonds and weakening 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
It also contributes to the development of Matador’s digital gold platform. Users will be able to own, trade, and store digital gold, which is backed by physical reserves at the Royal Canadian Mint on this platform. The Board had considered Ethereum nd Solana options but settled for Bitcoin as it has the security and stability required for the project.
Matador CEO and Chairman Deven Soni said that Bitcoin is the perfect currency for a product built on trust and value. The company will keep on testing platform alternatives and aims to choose the platform technology in Q1 2025. Following this, Matador will open the digital gold product to a small audience.
It also comes at a time of growing institutional adoption of Bitcoin. After the 2024 U.S. election, Bitcoin’s popularity spiked. The use of Bitcoin has increased after New President Donald Trump objected it as a hedge for inflation. MicroStrategy and Metaplanet were among the companies that increased their Bitcoin holdings. This trend is being adopted by many others as well. In uncertain economic times, Bitcoin is now front and center in corporate treasury strategies.
