Key Notes
- Matador aims to reduce reliance on Canadian dollars by diversifying its treasury with Bitcoin and USD assets.
- The Board identified risks in holding most of the treasury in CAD, including potential devaluation due to national debt.
- Bitcoin was chosen over Ethereum and Solana for its stability, security, and growing institutional adoption.
Matador, a company that uses blockchain technology to create digital representations of real-world assets such as gold, has announced that its Board of Directors has unanimously approved the decision to include Bitcoin
BTC
$93 826
24h volatility:
1.9%
Market cap:
$1.86 T
Vol. 24h:
$58.60 B
and USD-denominated assets in its corporate treasury. This decision is part of its strategy to protect and manage its financial resources over the long term.
The decision came after the company’s Board of Directors recognized the risks associated with holding most of its treasury in Canadian dollars, citing concerns such as Canada’s dependence on oil exports and growing national debt, which could lead to devaluation.. Matador will allocate $4.5 million to Bitcoin in December 2024 and may increase this amount in the future.
Matador Shifts to Bitcoin to Hedge Against Currency Risk
The company also plans to shift most of its cash balance sheet from CAD to USD, viewing BTC as a store of value to protect against currency devaluation. Matador’s move to digital currency aligns with the trend among top institutions that are now adopting Bitcoin as a safeguard against depreciating fiat currencies.
According to the words of Matador President Sunny Ray, the board and the management see Bitcoin as a way to secure their treasury for the future and support their goal of integrating Bitcoin into their gold-based products. He said:
“Matador’s Board and management believe in using Bitcoin to future-proof our treasury […] This step also supports our mission to explore using Bitcoin as a platform for our gold-based products.”
Bitcoin’s Role in Securing Matador’s Financial Future and Product Development
The inclusion of BTC will accelerate the development and launch of the Matador gold platform, enabling users to own, trade, and store digital gold backed by physical reserves held at the Royal Canadian Mint. It was stated that the reserves would help support product development, further improving investors’ trust in the company’s treasury strategy.
The decision to select Bitcoin ahead of other digital assets was made after reviewing other platforms such as Ethereum and Solana. The deep liquidity of BTC and its growing adoption by top institutions make it a better choice than other digital assets, making it the best choice for Matador’s digital gold platform.
The CEO of Matador Deven Soni, noted that Bitcoin is the best choice for their product, which focuses on trust, permanence, and value. The Board will review other technology options and decide by the first quarter of 2025 which platform will support its digital gold product. After that, Matador plans to launch the product to a limited audience and keep shareholders informed about their treasury and custody plans.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.
