The Ontario Securities Commission has cleared Matador to raise $58 million, which it intends to use to expand its Bitcoin treasury.
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Bitcoin financial services firm Matador Technologies has received the regulatory green light to sell up to 80 million Canadian dollars ($58.4 million) worth of company shares, which it will use to help reach its goal of owning 1,000 Bitcoin by the end of 2026.
Matador said on Tuesday that the Ontario Securities Commission has permitted it to issue $58.4 million worth of common shares, warrants, subscription receipts, debt securities, or units over a period of 25 months.
Matador CEO Deven Soni said the firm is “focused on increasing Bitcoin per share over time” and would “continue to target a treasury balance of 1,000 Bitcoin by the end of 2026.”
Matador currently holds 175 Bitcoin (BTC) worth $15.3 million, making it the 90th largest corporate Bitcoin holder, BitcoinTreasuries.NET data shows.
Matador’s chief visionary, Mark Voss, said it would closely monitor Bitcoin’s volatility and navigate the current market cycle to deploy capital at the most opportune times.
Shares in Matador (MATA) fell on the news, closing Tuesday down 3.57%.
More than 190 publicly traded companies now hold Bitcoin on their balance sheets, continuing the trend of institutional Bitcoin adoption after spot Bitcoin exchange-traded funds launched in the US last year.
However, many companies that adopted Bitcoin buying strategies have seen their share prices slide as crypto markets retraced and the initial hype faded, prompting some analysts to question the long-term sustainability of Bitcoin treasury strategies.
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Some corporate Bitcoin holders have begun selling portions of their Bitcoin reserves to meet balance-sheet obligations amid a tightening in market conditions.
Chip maker Sequans sold 970 BTC in early November to redeem outstanding convertible debt, backsliding on its goal to accumulate 100,000 BTC over the next five years.
Matador bought 175 BTC in first year of treasury
Matador builds products to help traditional finance firms enter the Bitcoin ecosystem and announced that it would become a Bitcoin treasury company a year ago, on Dec. 23, 2024.
In July, Matador said it plans to expand its targeted 1,000 BTC holdings by 2026 to 6,000 BTC before the end of 2027.
Its grand goal is to obtain 1% of Bitcoin’s fixed supply, which amounts to about 210,000 BTC.
Michael Saylor’s Strategy is the only corporate Bitcoin holder that has accumulated that amount to date.
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