CMC News

Matador Gets Regulatory Approval for $58M Share Sale

The Ontario Securities Commission has cleared #Matador Technologies to raise $58 million through share sales, which the company will use to expand its #Bitcoin treasury toward a goal of owning 1,000 $BTC by the end of 2026.

The Bitcoin financial services firm said Tuesday that regulators permitted it to issue $58.4 million worth of common shares, warrants, subscription receipts, debt securities, or units over 25 months. Matador CEO Deven Soni said the company remains focused on increasing Bitcoin per share over time.

Matador currently holds 175 $BTC worth $15.3 million, making it the 90th-largest corporate Bitcoin holder according to   BitcoinTreasuries.NET data. Chief visionary Mark Voss said the firm would closely monitor Bitcoin's #volatility and navigate the current market cycle to deploy capital at optimal times.

More than 190 publicly traded companies now hold $BTC on their balance sheets, continuing the institutional Bitcoin adoption trend that accelerated after spot Bitcoin exchange-traded funds launched in the U.S. last year. The regulatory approval positions Matador to significantly expand its holdings through multiple financing instruments.

Shares in Matador (MATA) fell on the news, closing Tuesday down 3.57%. Many companies adopting Bitcoin buying strategies have seen share prices slide as #crypto markets retraced and initial hype faded, prompting analysts to question long-term sustainability of Bitcoin #treasury strategies.

Some corporate Bitcoin holders have begun selling portions of reserves to meet balance-sheet obligations amid tightening 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 five years.

Matador announced it would become a Bitcoin treasury company one year ago on Dec. 23, 2024.