Canadian Firm Discovers Revolutionary Gold-Bitcoin Innovations

1. Matador Technologies Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Matador Technologies Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Matador Technologies Inc. (MATA:TSX.V; MATAF:OTCQB) announced it has entered into an arm's-length agreement for a secured convertible note facility with ATW Partners that allows for the issuance of convertible notes totaling up to US$100 million.

This facility is structured to bolster the company's goal of augmenting its Bitcoin reserves, it noted in a release.

An initial US$10.5 million will be funded at the outset, with the potential for an additional US$89.5 million (U.S.) available under specific conditions, including the finalization of a registration rights agreement and securing all necessary regulatory approvals.

This facility, signed on July 22, represents a pivotal move in advancing the company's treasury strategy, with funds designated exclusively for the acquisition of Bitcoin to enhance Matador's balance sheet, aiming to position it among the top 20 corporate bitcoin holders globally.

"This financing is a significant step towards achieving our long-term goals for Bitcoin accumulation," said Chief Executive Officer Deven Soni. "It equips us with the resources to boost our Bitcoin holdings effectively while minimizing immediate shareholder dilution and supporting our overall capital management strategy."

Mark Moss, Chief Visionary Officer, emphasized, "Bitcoin is integral to our business model and financial strategy. This financing arrangement not only facilitates our goal of increasing Bitcoin per share but also demonstrates ongoing institutional interest in our approach."

The financing is aligned with Matador's strategic objectives for Bitcoin, which include acquiring up to 1,000 BTC by 2026, expanding to 6,000 BTC by 2027, and maintaining a long-term goal of holding 1% of the global bitcoin supply, thereby becoming a top 20 corporate holder.

The convertible notes will bear an interest rate of 8% annually, with a maturity of approximately two years from each closing date, the company said. They are to be senior secured, with the initial tranche backed by 1.5 times the bitcoin collateral and subsequent tranches secured by 1.0 times bitcoin collateral. The conversion price for these notes will be set at the closing market price just before the corresponding news release, with the initial conversion price pegged at 72 Canadian cents.

Gold 'Grammies,' No Talent Required

Earlier this month, Matador celebrated a significant achievement with the launch of its Digital Asset Platform, which blends the artistry of precious metals with advanced blockchain technology. This platform allows for the creation of unique digital art pieces that are permanently etched onto 1 gram of physical gold.

Named "Grammies," these digital designs are recorded on the Bitcoin blockchain, enabling collectors to own, imprint on gold, and digitally display these artworks.

This innovative fusion of art and technology offers a new dimension to art collection, making the Grammies compatible with various Bitcoin-friendly wallets and convertible into physical gold items, thus enhancing their practicality and appeal.

Each Grammie is carefully crafted onto a gram of gold and delivered directly to collectors.

The debut series features a limited edition of 1,000 unique artworks, produced in collaboration with celebrated artist dxxmsdxy. Each piece is algorithmically generated, complete with a unique serial number and narrative, ensuring its distinctiveness and authenticity.

A Major Milestone for Company

With gold prices currently around US$3,300 an ounce, this initiative opens new opportunities for art collectors and precious metal enthusiasts looking for diverse investment options. Each artwork is securely documented on the Bitcoin blockchain, one of the most robust blockchains globally, highlighting the security and authenticity of these digital assets. Matador holds a substantial amount of gold, securely stored and audited at the Royal Canadian Mint, as detailed in the company’s audited financial statements.

This launch is a key milestone for Matador, following its receipt of conditional approval from the TSX Venture Exchange to complete its previously announced change of business (COB). The COB transitions Matador to a hybrid technology/investment entity, expanding its business model to include activities aligned with its investment strategy and TSX-V standards, such as managing Bitcoin and investing in Bitcoin-related technologies and infrastructure.

"With conditional approval secured, we are closer to advancing our Bitcoin treasury strategy and fostering global Bitcoin-native innovation, pending final TSX-V approval," said CEO Deven Soni.

The company said it recently proposed to expand its global footprint by entering into an agreement to invest in HODL Systems, one of India's first digital asset treasury companies, securing up to a 24% ownership stake.

The Catalyst: Tokenized Gold Taking on Gold ETFs

This year, the trading volume of tokenized gold has surged to over US$19 billion, surpassing numerous well-known gold ETFs, according to a report by David Marsanic for Crypto.news. Tokenized assets are increasingly being recognized as a practical alternative to conventional investment options.

A recent analysis from CEX.io, dated July 8, indicates that tokenized gold has become more popular than several gold ETFs. This asset class has recorded US$19 billion in trading volume this year, outstripping smaller gold ETFs, though it still falls short of industry giants like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU). However, it has exceeded the trading volumes of SGOL, AAAU, IAUM, and OUNZ.

The rise in tokenized gold trading volume has significantly eclipsed that of all gold ETFs this year. Particularly, in the second quarter of 2025, the trading volume for this asset class jumped from US$2.4 billion to US$19.2 billion, an eightfold increase. This trend is consistent with a broader movement where tokenized gold has continually outperformed gold ETFs in terms of trading volume growth for four consecutive quarters.

According to the CEX.io report, this remarkable performance suggests a shift in capital from traditional gold ETFs to tokenized gold assets, as highlighted by Marsanic. The report also notes that the surge in trading volume for tokenized gold is primarily driven by retail and crypto-native investors, while institutional investors still predominantly favor traditional gold ETFs.

Despite these advances, tokenized gold still lags behind ETFs in terms of market capitalization. For example, while GLD’s total market cap grew by 36%, the market cap for tokenized gold only saw a 29% increase. This indicates that tokenized gold is not yet widely considered a long-term store of value; rather, it is mostly utilized as a utility asset within the DeFi ecosystem.

Prominent analysts from leading institutions like Goldman Sachs and JPMorgan, along with other financial experts on Wall Street, predict that gold could reach the US$4,000 mark by mid-2026, as reported by Juan Carlos Arancibia for Investor's Business Daily.

Gold prices stabilized on Monday after experiencing declines for three straight days, influenced by a new trade agreement between the United States and the European Union which enhanced risk appetite and reduced the appeal of the safe-haven asset, Peter Nurse reported for Investing.com on July 28.

Market participants also proceeded with caution in anticipation of the Federal Reserve's interest rate decision scheduled for later in the week.

As of 4:50 a.m. ET, spot gold slightly decreased by 0.1% to US$3,334.05 an ounce, and gold futures similarly fell by 0.1% to US$3,390.05/oz. Gold recorded two consecutive weekly losses on Friday following a significant U.S.-Japan trade agreement that alleviated global trade tensions.

The agreement between the U.S. and the EU, announced on Sunday, established a 15% tariff on most European goods entering the U.S., which is half the rate previously threatened, Nurse wrote. This development helped prevent a full-blown trade conflict and positively influenced market sentiment.

Additionally, senior U.S. and Chinese officials were expected to meet in Stockholm on Monday to discuss a potential three-month extension of their tariff truce, he noted. According to a report by the South China Morning Post, there are currently no plans to implement new tariffs before the August 12 deadline. This news contributed to the dampened demand for gold, even as the dollar showed little movement.

Analysts observed that the movement towards a trade truce reduced uncertainty, prompting investors to shift their funds to equities and diminishing the allure of gold, according to Nurse.

Ownership and Share Structure

According to the company, 65% is owned by management and insiders, including Founder and Director Donato Sferra, Vice President of Finance Geoff St. Clair, Director Richard Murphy, Soni, a strategic investor (through UTXO Management, LLC and 210K Capital, LP), Director Tyler Evans (through UTXO Management, LLC and 210K Capital, LP), and Founder Trevor Koverko, among others. 

The rest, about 35%, is retail, and includes Hive Digital with 3%, Kitco Metals with 1%, and Gold Fields Ltd. with 4%, the company said.

It has about 105.94 million shares outstanding and has a market cap of CA$76.62 million. It trades in a 52-week range of CA$0.11 and CA$2.02.