A Major Canadian Company Begins Buying Bitcoin

Canadian real-world asset tokenization company Matador Technologies has become the latest company to add Bitcoin to its portfolio.

A Major Canadian Company Begins Buying Bitcoin

On December 23, the company said its board of directors unanimously approved the addition of Bitcoin and other USD-denominated assets to its balance sheet as part of a strategy for “long-term capital preservation.”

Matador noted that its existing treasury, which is primarily denominated in Canadian dollars, is at risk.

“Canada’s reliance on oil exports coupled with its growing national debt raises concerns about the potential for devaluation and loss of purchasing power of Canadian dollar-denominated assets,” the company noted.

Matador said it plans to make an initial allocation of $4.5 million to Bitcoin in December and will continue to consider additional purchases through board-level, measured purchases.

Matador Technologies Buy Bitcoin
Matador Technologies Buy Bitcoin

The company also plans to convert the majority of its balance sheet cash from Canadian dollars to US dollars. Matador Chairman Sunny Ray added:

“The board and management of Matador believe that the use of Bitcoin will help protect our treasury assets in the future. This move also supports our mission to explore using Bitcoin as a foundation for our gold-based products,” the company said.

Matador said that the Bitcoin treasury will support the development and launch of its digital gold platform next year. The platform is a blockchain-based system that allows users to buy, trade, and store tokenized gold, backed by physical reserves.

Read more: Crypto Market Booms After the 2024 U.S. Presidential Election

Matador is the latest in a series of companies to add Bitcoin to their balance sheets as a strategic reserve in recent months.

On December 20, biopharmaceutical company Quantum BioPharma disclosed its purchase of $1 million worth of Bitcoin and other crypto assets to diversify its treasury.

Earlier in late November, Canadian healthcare company Jiva Technologies approved a plan to add $1 million worth of Bitcoin to its holdings. Similarly, video-sharing platform Rumble also approved a strategy to allocate up to $20 million of the company’s excess cash into Bitcoin.

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