A Major Canadian Company Begins Buying Bitcoin
Canadian real-world asset tokenization company Matador Technologies has become the latest company to add BTC to its portfolio.
On December 23, the company said its board of directors unanimously approved the addition of BTC & other USD-denominated assets to its balance sheet as part of a strategy for “long-term capital preservation.”
Matador noted that its existing treasury, which is primarily denominated in Canadian dollars, is at risk.
“Canada’s reliance on oil exports coupled with its growing national debt raises concerns about the potential for devaluation and loss of purchasing power of Canadian dollar-denominated assets,” the company noted.
Matador said it plans to make an initial allocation of $4.5M to BTC in December and will continue to consider additional purchases through board-level, measured purchases.
The company also plans to convert the majority of its balance sheet cash from Canadian dollars to US dollars. Matador Chairman Sunny Ray added:
“The board and management of Matador believe that the use of Bitcoin will help protect our treasury assets in the future. This move also supports our mission to explore using Bitcoin as a foundation for our gold-based products,” the company said.
Matador said that the Bitcoin treasury will support the development and launch of its digital gold platform next year. The platform is a blockchain-based system that allows users to buy, trade, and store tokenized gold, backed by physical reserves
Matador is d latest in a series of companies to add Bitcoin to their balance sheets as a strategic reserve in recent months.
On December 20, biopharmaceutical company Quantum BioPharma disclosed its purchase of $1M worth of Bitcoin and other crypto assets to diversify its treasury.
Earlier in November, Canadian healthcare company Jiva Technologies approved a plan to add $1 million worth of BTC to its holdings. Similarly, video-sharing platform Rumble also approved a strategy to allocate up to $20M of the company’s excess cash into BTC.
