Publicly traded Bitcoin solutions firm Matador Technologies says it is planning to buy up to 6,000 Bitcoin by 2027, in a significant acceleration of its Bitcoin buying strategy.
The Canadian blockchain and Bitcoin technology firm announced on Wednesday that it has an interim objective of buying 1,000 Bitcoin (BTC) on or before 2026 and plans to develop a Bitcoin treasury strategy to accumulate 6,000 BTC by 2027.
The firm currently holds 77.4 BTC, worth around $9 million at current market prices. Its long-term goal is to hold 1% of the total supply and become a top 20 corporate Bitcoin holder globally.
“Our business is structured around Bitcoin as a core asset,” said Deven Soni, CEO of Matador Technologies.
He added that the new approach extends beyond treasury management to include “infrastructure and operational components” aligned with the Bitcoin ecosystem.
Bitcoin treasury funding for two years
On July 14, Matador filed a $900 million Canadian dollar ($656 million) shelf prospectus to provide financing flexibility over 25 months.
They plan to use various funding methods, including at-the-market equity offerings, convertible financings, asset divestitures, Bitcoin-backed credit facilities and strategic acquisitions or partnerships.
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The firm received final approval from the Canadian TSX Venture Exchange for a change of business to a hybrid “technology/investment issuer” in early July, clearing the way for its Bitcoin treasury strategy.
Compounding flywheel strategy
The firm has a Bitcoin-backed “compounding flywheel” strategy that revolves around four components.
These are strategically accumulating Bitcoin while maximizing Bitcoin per share, generating treasury yields through “volatility capture and synthetic mining,” building real-world applications to create Bitcoin-denominated revenue, and supporting the ecosystem through partnerships with crypto infrastructure and DeFi projects.
“Our future plans to accumulate Bitcoin are designed to establish long-term stability on our balance sheet while reducing exposure to inflationary risk,” said Mark Moss, the firm’s chief visionary officer.
However, Madador stock didn’t show the typical bullish reaction and fell 4.65% on Wednesday, according to Google Finance. The firm’s shares are up almost 37% since the beginning of the year.
Bitcoin treasuries hold 6% of supply
There has been a boom in Bitcoin treasury companies this year as participants hope to emulate the success of Michael Saylor’s Strategy, the world’s largest corporate BTC holder with $71 billion worth of the asset.
Public and private companies hold around 1.15 million BTC cumulatively, according to BitcoinTreasuries.NET. This stash is currently worth $136 billion and represents almost 6% of the total circulating supply.
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