Canadian Firm Matador Adds Bitcoin to its Balance Sheet
Canadian firm Matador Technologies Inc. (TSXV: MATA) has announced a bold step to strengthen its corporate treasury by investing $4.5 million in Bitcoin.
The Toronto Stock Exchange listed firm said it will transition the majority of its cash reserves from Canadian dollars (CAD) to U.S. dollars (USD).
This decision, approved unanimously by the Board of Directors, is part of the company’s long-term strategy to mitigate risks associated with currency devaluation.
National Debt Could Impact Purchasing Power of Canadian Dollar
The Board shared concerns about Canada’s reliance on oil exports and its increasing national debt, which could erode the purchasing power of CAD-denominated assets. To counter these risks, the company is diversifying its treasury with Bitcoin and USD, both of which are viewed as more resilient stores of value.
The Bitcoin allocation will take place in December 2024, with future acquisitions under consideration through measured buying programs.
“Matador’s Board and management believe in using Bitcoin to future-proof our treasury,” said Sunny Ray, President of Matador. “This step also supports our mission to explore using Bitcoin as a platform for our gold-based products.”
Growing Trend
This latest move by Matador with a growing global trend of corporations adding Bitcoin into their treasuries as a hedge against inflation and currency debasement.
MicroStrategy continues to focus more on its aggressive Bitcoin buying strategy. MicroStrategy executive chairman Michael Saylor continues to make huge investments in Bitcoin reflecting the firm’s commitment to leveraging crypto as a key component of its financial strategy.
In a Monday post on X, MicroStrategy co-founder Michael Saylor said that the latest purchase brings the company’s total holdings to an impressive 444,262 BTC, accumulated at an average cost of $62,257 per Bitcoin.
MATA and Bitcoin Price Action
The Matador Tech stock price is trading at 0.58 cents up 5.45% on Monday. Bitcoin is trading at $93,900.
The post Canadian Firm Matador Adds Bitcoin to its Balance Sheet appeared first on Cryptonews.
