Canadian bitcoin treasury firm Matador approved for $58 million share issuance… aims to expand holdings

Canadian bitcoin financial services firm Matador Technologies has been approved to issue a large amount of securities to expand its bitcoin holdings. The company plans to use this financing to achieve its goal of holding 1,000 bitcoins by the end of 2026.

According to Cointelegraph on the 24th (local time), the Ontario Securities Commission (OSC) approved Matador to issue securities such as common shares, warrants and debentures of up to 80 million Canadian dollars. In U.S. dollar terms, this is about 58.4 million dollars. The issuance period was set at 25 months.

Matador plans to use the funds raised to expand its bitcoin treasury. CEO Deven Soni said, "As time passes, we are focusing on increasing the amount of bitcoin held per share," and "we will continue to pursue the goal of holding 1,000 bitcoins by the end of 2026."

Matador currently holds 175 bitcoins, which is approximately 15.3 million dollars. According to BitcoinTreasuries.net, Matador ranks as the 90th-largest holder of bitcoin among companies worldwide.

Mark Voss, Matador's Chief Vision Officer, also said, "We will closely monitor bitcoin volatility and deploy capital at the most appropriate times within market cycles." However, after the announcement of the issuance approval, Matador's stock closed down 3.57% in one day.

Currently, there are more than 190 publicly traded companies worldwide that hold bitcoin as a financial asset. Since the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S., institutional adoption of bitcoin has continued, but some company stocks have underperformed amid crypto market adjustments and waning initial enthusiasm.

In fact, some companies sold bitcoin holdings due to financial burdens. Semiconductor company Sequans sold 970 bitcoins in early November to repay convertible bonds, retreating from its goal of acquiring 100,000 bitcoins over the next five years.

Matador purchased 175 bitcoins in its first year after announcing its transition to a bitcoin treasury company on December 23 last year. The company raised its targets to 1,000 bitcoins by 2026 and 6,000 by the end of 2027, and in the long term aims to secure about 210,000 bitcoins, equivalent to 1% of the total bitcoin supply. Currently, the only company that has reached this level is MicroStrategy, led by Michael Saylor.