Bitcoin treasury Matador cleared for $58M share sale

Matador Technologies was cleared to issue up to C$80 million, or roughly $58 million, in shares, a step intended to hasten its plan for a Bitcoin holding capacity of 1,000 Bitcoin by 2026.

The company confirmed on Monday that the Ontario Securities Commission approved it to issue common shares, warrants, subscription receipts, debt securities, or units over the next 25 months.

The company stated that the $58 million base shelf prospectus is designed to fund both strategic Bitcoin purchases and general corporate needs, allowing Matador to access capital efficiently while remaining disciplined in terms of timing and pricing, as part of a long-term Bitcoin strategy. “Obtaining the receipt for our CAD $80 million base shelf prospectus is a critical step in maturing our capital structure,” said Deven Soni, CEO of Matador.

The company expects to build up its Bitcoin treasury incrementally, utilizing multiple financing sources instead of relying solely on one, and noted that shelf approval does not obligate it to raise money immediately. According to BitcoinTreasuries.NET, the firm currently holds approximately 175 Bitcoins, worth around $15.3 million, ranking 90th globally among corporate holders.

Matador bought $4.5 million worth of Bitcoin

Mark Voss, Matador’s chief visionary, insists the firm would keep a close eye on Bitcoin’s volatility and time its capital deployment carefully through the current market cycle. Soni also noted, “Matador may, from time to time, allocate available capital toward Bitcoin purchases or other corporate purposes, depending on market conditions, regulatory requirements, the company’s financial position, and other factors.”

In December 2024, the TSX-listed firm began executing its Bitcoin-first strategy with a $4.5 million Bitcoin purchase, saying at the time that BTC would help future-proof its treasury. Since then, the company has grown its Bitcoin treasury by roughly 767%.

Notably, last month, the company finalized the closure of its convertible note program, signaling a full commitment to acquiring Bitcoin for its balance sheet as it works toward acquiring 6,000 BTC. The firm stated that its decision to add Bitcoin and US dollars to its treasury is driven by concerns that Canada’s debt levels could erode the purchasing power of the local currency.

The company’s ultimate target is to hold 1% of Bitcoin’s total supply, roughly 210,000 BTC, a milestone only Michael Saylor’s Strategy has reached so far.

Some 190 companies hold Bitcoin, though their stocks have been falling sharply. 

Investment in companies holding Bitcoin has grown to over 190 publicly traded companies, a sign of continued institutional traction from the inception of spot Bitcoin ETFs in the US. Although most Bitcoin-holding companies have seen their stocks decline during market drawdowns, leading analysts to question the long-term sustainability of their treasury strategies.

Some corporate Bitcoin holders are even selling part of their BTC to settle their financial obligations as the market tightens. For instance, Sequans sold 970 BTC in November to pay off convertible debt, deferring its goal of raising 100,000 BTC. 

In addition, Strategy has temporarily suspended the buying of Bitcoin and raised its cash holding to $2.19 billion following a $747.8 million equity sale. Rising cash balances indicate a desire to maintain short-term financial flexibility and satisfy dividend and debt obligations with a capital structure that incorporates preferred shares and borrowing. With 671,268 Bitcoin, valued at an average price of $74,972, the firm currently holds a total amount of this cryptocurrency of around $50 billion.

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