Matador Technologies, a Canadian company, is making a big bet on Bitcoin. Their goal? To own roughly 1% of all Bitcoin by 2027.
The Big Picture: 1% of Bitcoin
Currently holding about 77.4 Bitcoin, Matador plans a massive increase. Their immediate goal is to reach 1,000 Bitcoin by the end of 2026. After that, they’re aiming for a whopping 6,000 Bitcoin by the end of 2027. This ambitious plan would put them among the top 20 public companies holding Bitcoin globally. They’ve even filed for a CAD $900 million prospectus to help fund these purchases.
Funding the Bitcoin Frenzy
Matador isn’t relying on a single funding method. They’re exploring several avenues, including:
- Equity offerings: Selling company shares to raise capital.
- Convertible financings: Raising funds through debt that can be converted into equity.
- Asset sales: Selling off non-essential assets.
- Bitcoin-backed loans: Borrowing money using their Bitcoin holdings as collateral.
- Acquisitions and partnerships: Buying other companies or collaborating with them.
Matador will carefully consider the price, timing, and impact on their Bitcoin holdings per share before making any purchase.
Beyond Buying Bitcoin: A Multi-pronged Strategy
Matador’s strategy isn’t just about accumulating Bitcoin. They have a four-part plan:
- Build a Bitcoin reserve: Accumulate a large amount of Bitcoin.
- Generate yield: Use strategies like volatility trading and synthetic mining to earn more Bitcoin.
- Offer Bitcoin-denominated products: Create investment products for customers that use Bitcoin.
- Invest in blockchain infrastructure: Support blockchain companies and DeFi (decentralized finance) startups.
They’re already expanding internationally, with a recent listing in Frankfurt and an investment in an Indian company.
The Competition
Matador isn’t alone in this Bitcoin buying spree. Other public companies, like Semler Scientific (US) and Metaplanet (Japan), are also making significant Bitcoin acquisitions. Each company uses different methods, but the goal is the same: amass a large Bitcoin reserve.
The Future
Matador’s success depends on market conditions, investor interest, and regulatory approvals. While there are challenges, their clear milestones and diverse funding strategy give them a fighting chance to achieve their ambitious Bitcoin goal.