Matador Technologies, a Canadian corporation that specializes in tokenizing real-world assets, has announced a bold move to diversify its treasury by investing $4.5 million in Bitcoin. The board of directors unanimously accepted the move, signaling a shift in strategy towards long-term capital preservation.
The corporation expressed concerns about the stability of the Canadian dollar, citing factors such as Canada’s reliance on oil exports and rising government debt. Matador noted that these variables could cause CAD-denominated investments to lose value and purchasing power.
To mitigate these risks, Matador is transferring the majority of its cash holdings to US dollars and Bitcoins. According to Sunny Ray, the company’s president, Bitcoin provides a dependable solution to protect the company’s treasury while also aligning with the company’s objective to incorporate it into its gold-backed products.
The company plans to complete the initial $4.5 million investment in December and plans to acquire additional Bitcoins through a measured purchase program. Matador also announced the creation of a blockchain-based platform for tokenized gold, which will enable users to purchase, sell, and store digital gold backed by physical reserves.
This approach is consistent with an increasing trend of firms using Bitcoin to hedge against inflation and currency instability. By incorporating Bitcoin into its balance sheet, Matador joins other businesses that see cryptocurrencies as a strategic asset in the face of economic uncertainty.
