Matador Secures Approval to Raise $58M as It Pushes Toward 1,000 Bitcoin Target

Source: DefiPlanet Original Title: Matador Secures Approval to Raise $58M as It Pushes Toward 1,000 Bitcoin Target Original Link:

Quick Breakdown

• Matador received regulatory approval to raise to $58.4 million over 25 months to fund Bitcoin accumulation.
• The firm currently holds 175 BTC and aims to reach 1,000 BTC by the end of 2026, with larger long-term ambitions.
• While corporate Bitcoin adoption is growing, market volatility and balance-sheet pressures are raising questions about sustainability.

Regulatory green light opens door to capital raise

Bitcoin-focused financial services firm Matador Technologies has received regulatory approval in Canada to raise 80 million Canadian dollars ($58.4 million), as it doubles down on its long-term Bitcoin accumulation strategy.

Matador announced Tuesday that the Ontario Securities Commission has approved a shelf prospectus, allowing the company to issue up to $58.4 million in securities over the next 25 months.

The approval gives Matador flexibility to raise funds through common shares, warrants, subscription receipts, debt instruments, or bundled units, depending on market conditions.

The capital raise is expected to support the company’s plan to expand its Bitcoin treasury significantly.

“Focused on Increasing Bitcoin Per Share,” CEO Says

Chief Executive Officer Deven Soni said the company remains committed to growing Bitcoin holdings in a way that benefits shareholders over time. “Our focus is increasing Bitcoin per share,” Soni said, adding that Matador is still targeting a treasury balance of 1,000 Bitcoin by the end of 2026.

Matador currently holds 175 Bitcoin, valued at roughly $15.3 million, ranking it 90th among corporate Bitcoin holders.

Bitcoin Treasury strategies face growing scrutiny

Several companies that rushed into Bitcoin accumulation have seen their share prices decline as crypto markets cooled and early enthusiasm faded.

Some firms have even been forced to sell portions of their Bitcoin reserves to meet financial obligations. In early November, semiconductor company Sequans sold 970 Bitcoin to repay outstanding convertible debt, reversing its earlier ambition to amass 100,000 BTC over five years.

Matador’s long-term Bitcoin ambitions

Matador builds products to help traditional financial institutions integrate Bitcoin services, and it officially adopted a Bitcoin treasury strategy on December 23, 2024.

While its near-term goal remains 1,000 BTC by 2026, the company has signalled even bigger ambitions. In July, Matador said it aims to grow its holdings to 6,000 Bitcoin by the end of 2027.

Ultimately, the firm has set its sights on acquiring 1% of Bitcoin’s fixed supply, or roughly 210,000 BTC, a milestone currently achieved only by Michael Saylor’s Strategy.