Matador Technologies, a Canadian firm specializing in gold tokenization, has announced plans to diversify its treasury by incorporating Bitcoin. The company aims to reduce its reliance on the Canadian dollar amid concerns over the currency’s stability.
Matador’s Bitcoin Strategy: A Move Toward Long-Term Stability
In a Dec. 23 statement, Matador revealed that its board of directors had unanimously approved the addition of Bitcoin and USD-denominated assets to its balance sheet. This move is part of a broader strategy to preserve the company’s capital over the long term.
The firm cited risks associated with holding a treasury dominated by Canadian dollars, pointing to the country’s reliance on oil exports and rising national debt as factors that could erode the currency’s value.
To kick off its plan, Matador will allocate an initial $4.5 million into Bitcoin before the end of December. The company also plans to shift most of its cash reserves from Canadian dollars to US dollars and explore further Bitcoin purchases through measured buying programs.
President’s Statement and Vision for Bitcoin
Sunny Ray, President of Matador, emphasized the strategic importance of Bitcoin for the company’s future.
“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,” Ray explained.
The adoption of Bitcoin aligns with Matador’s plans to launch a blockchain-based platform in 2024. This platform will enable users to buy, trade, and store tokenized gold backed by physical reserves.
Bitcoin Adoption on the Rise in Canada
Matador joins a growing list of companies embracing Bitcoin as part of their treasury management strategies. Recently, several Canadian firms have made similar moves:
- Quantum BioPharma announced on Dec. 20 that it had purchased $1 million worth of Bitcoin and other cryptocurrencies to diversify its treasury.
- Jiva Technologies, a Canadian wellness firm, approved a plan in November to allocate $1 million to Bitcoin.
- Rumble, a video-sharing platform, unveiled plans to invest up to $20 million of its surplus cash reserves in Bitcoin.
For many companies, Bitcoin represents a hedge against currency devaluation and a way to diversify beyond traditional assets. As concerns about economic stability rise, more firms are exploring Bitcoin as a strategic reserve asset.
