Canada’s Matador Technologies Makes Bold $4.5M Bet on Bitcoin Reserve

- Plan to Purchase $4.5 Million Worth of Bitcoin - Matador Technologies Experiences Stock Price Drop After TSX Venture Exchange Listing [Unblock Media] Recently, Canadian cryptocurrency company Matador Technologies announced that it would utilize Bitcoin as a financial reserve asset. The company plans to purchase $4.5 million worth of Bitcoin by the end of this month. Previously known as Scaling Capital 1, Matador Technologies recently changed its name when it got listed on the TSX Venture Exchange. Since the listing, its stock price has fallen about 35%, from $0.90 to $0.58. This decline may be attributed to the volatility often seen in early post-listing stock prices, as well as possible investor disappointment or market uncertainty. For example, the decline in Matador's stock price after listing could be due to unclear new improvement strategies or market reactions falling short of expectations. Matador's platform, currently in development on the Bitcoin network, is aimed to be completed by early 2025. It will enable users to buy and trade gold digitally. The high security and widespread adoption of Bitcoin were the reasons for its selection, aiming to enhance the security of gold holdings and the transparency of transactions. Currently, the company is following a trend among smaller companies to adopt Bitcoin as a reserve asset. Since MicroStrategy started purchasing Bitcoin in 2020, major tech companies like Tesla have followed suit, holding Bitcoin as an asset. Meanwhile, large corporations like Microsoft are not following this trend, leaving relatively smaller companies like Matador to continue it. MicroStrategy and Tesla hold approximately $4.1 billion and $1 billion worth of Bitcoin, respectively, using it as a risk hedging tool. In contrast, smaller companies like Matador tend to utilize Bitcoin as a survival strategy through innovative technology. Matador's market capitalization stands at about $49.5 million, with examples like Japan's investment firm Metaplanet adopting Bitcoin earlier this year. Metaplanet holds approximately $164 million worth of Bitcoin following its first purchase in April. Interestingly, Tyler Evans, the co-founder and CEO of BTC Inc., is on the boards of both Metaplanet and Matador. Matador's development plans include the launch of a mobile application for 24-hour gold trading and storage, with a more diverse product portfolio planned for the future. Matador aims to complete these goals by early 2025, taking the necessary technical steps to achieve them. This implies an expansion into other assets, beyond gold-based products. Specifically, Matador chose the Bitcoin network for its stability and security and plans to store the physical gold for digital gold trading with the Canadian government-owned Royal Canadian Mint. Matador's decision to purchase Bitcoin was unanimously approved by the board, as part of a strategy to future-proof the company's finances. Concurrently, the company plans to convert most of its cash reserves into US dollars while reducing the use of Canadian dollars. Amid criticisms of the traditional centralized financial system for being opaque and susceptible to manipulation, the decentralization and security of Bitcoin present an attractive alternative for companies like Matador. This trend suggests that Bitcoin may play a significant role in future financial markets.