Matador announced its plans to add Bitcoin and USD-denominated assets to its balance sheet.
The company plans to allocate $4.5 million to Bitcoin purchase in December 2024.
Major organizations across the world are eyeing Bitcoin to maintain their reserves, mitigating the risks associated with fiat currency reserves. While this strategy was originally adopted by Microstrategy years back, global firms and governments are onboarding this year. The latest to join the Bitcoin reserve strategy club is Canadian firm Matador Technologies Inc.
As per the latest report from Globe Newswire, the Board of Directors of Matador approved adding Bitcoin to its balance sheet. The Board also identified the risks associated with its current treasury, comprising Canadian dollars. To address and mitigate the risks of potential devaluation and loss of purchasing power of CAD, Matador plans to add BTC to its treasury.
Matador Technologies Allocates $4.5M to Bitcoin Acquisition This Month
The Board of Directors of Matador unanimously approved addition of Bitcoin and USD-denominated assets to its treasury. Their major goal is to focus on the company’s long-term capital reservation strategy and to address risks associated with current Canadian dollar reserves.
Initially, Matador Technologies plans to allocate around $4.5 million for Bitcoin purchase before the new year. The firm will continue to explore additional buying opportunities, adopting measured buying programs. In addition to adding Bitcoin to its balance sheet, the company will also move its CAD cash reserves to USD.
The company’s decision to add BTC to its balance sheet shows its unwavering belief in blockchain and cryptocurrency, particularly Bitcoin. Increasing global trends of BTC adoption combined with institutional adoption as an alternative to bonds and depreciating currencies encouraged Matador to explore Bitcoin.
Microstrategy is one of the early adopters of Bitcoin that continues to purchase BTC irrespective of its price trend. Following its footsteps, Mara is also adding Bitcoin to its reserves with 0% convertible note offerings.
Keeping major corporations aside, countries such as El Salvador and The City of Lugano have started accepting Bitcoin for purchases. The mayor of Vancouver city also proposed to become a Bitcoin-friendly city earlier this month.
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