Bitcoin Ecosystem Co. Expands Its Substantial Holdings

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Matador Technologies Inc. (MATA:TSX.V; MATAF:OTCQB) announced the acquisition of an additional 5 Bitcoin for CA$802,020 through Netcoins, a subsidiary of BIGG Digital Assets Inc. (TSXV:BIGG), at an average price of US$116,619 per Bitcoin, including fees and expenses.

The acquisition aligns with Matador's long-term plan to incorporate Bitcoin as a central asset in its treasury. With the purchase, Matador's Bitcoin holdings now total approximately 77.4 Bitcoin (including Bitcoin equivalents), reinforcing its goal to diversify its treasury with long-term reserve assets. Matador considers Bitcoin a superior reserve asset and plans to increase its holdings over time.

In addition to using available cash for this purchase, Matador has filed a CA$900 million base-shelf prospectus and is working on finalizing a US$100 million secured convertible-note facility with ATW Partners. Both the Prospectus and the Facility are pending approval and once approved are expected to be used to further accelerate Bitcoin acquisitions in line with the Matador's treasury strategy. The company said it is focused on maximizing Bitcoin per share and ultimately aims to hold 1 percent of Bitcoin’s fixed 21-million-coin supply.

"This purchase was funded with existing cash on hand, while our shelf prospectus and note facility, subject to approval, remain available for additional Bitcoin acquisitions as conditions warrant," said Chief Executive Officer Deven Soni. "We continue to work toward our disclosed targets of 1,000 BTC by 2026 and 6,000 BTC by 2027."

Chief Visionary Officer Mark Moss added, "This acquisition reflects the company's intention to increase its Bitcoin per share as part of its reserve asset strategy. The company intends to continue increasing its Bitcoin position to align itself with the global shift to sound money assets." said Mark Moss, Chief Visionary Officer, Matador Technologies.

As Matador advances its growth strategy, the company said it was committed to expanding its treasury holdings of Bitcoin, leveraging blockchain technology, with the goal of supporting long-term stakeholder value. The Company intends to continue increasing its Bitcoin position as part of a broader strategy to align itself with the global shift toward sound monetary assets.

Own, Digitally Showcase Distinctive Digital Art

Matador recently introduced its Digital Asset Platform, which combines the elegance of precious metals with cutting-edge blockchain technology. This platform enables the creation of distinctive digital art pieces that are permanently inscribed onto 1 gram of physical gold.

Known as "Grammies," these digital artworks are recorded on the Bitcoin blockchain, allowing collectors to own, imprint on gold, and digitally showcase these pieces, according to the company. This innovative fusion of art and technology adds 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 allure.

Each Grammie is carefully crafted onto a gram of gold and delivered directly to collectors. The inaugural series features a limited edition of 1,000 unique artworks, created in collaboration with renowned artist dxxmsdxy. Each piece is algorithmically generated, complete with a unique serial number and narrative, ensuring its distinctiveness and authenticity, as stated by Matador.

The initiative opens new opportunities for art collectors and precious metal enthusiasts seeking diverse investment options, according to the company. Each artwork is securely documented on the Bitcoin blockchain, one of the most robust blockchains globally, underscoring the security and authenticity of these digital assets. Matador said it holds a substantial amount of gold, securely stored and audited at the Royal Canadian Mint, as detailed in the company's audited financial statements.

Advantages of Tokenized Gold

Gold, with a market capitalization exceeding US$20 trillion, is a long-standing store of value but has often faced challenges related to accessibility and liquidity due to its physical nature, according to Joel Agbo's guide to tokenized gold on CoinGecko, updated May 5.

While gold ETFs offer a means for investment, they operate within regulated, centralized frameworks and often do not provide retail investors with direct ownership or the ability to redeem physical gold. The emergence of gold tokenization, which leverages blockchain technology, is creating a potentially more transparent and efficient global marketplace for gold, Agbo wrote.

Over the past five years, this sector has experienced significant growth. Currently, according to CoinGecko, the market for tokenized gold is valued at over US$2 billion and is positioned as a key trend to watch in 2025. Agbo noted that tokenization democratizes access to gold investments, enabling purchases of very small fractions on exchanges, such as Binance, which supports transactions as small as 0.0000031 PAXG (approximately $0.01).

Tokenized gold can also be traded around the clock on global cryptocurrency exchanges, providing superior liquidity, he wrote. Additionally, the immutable nature of blockchain ledgers ensures that every token transaction is permanently and publicly recorded, and tokenized gold can also be integrated into decentralized finance (DeFi) platforms.

The Catalyst: Gold Bouncing Back

The gold market bounced back from its lows and was trading in a relatively stable range as rising consumer prices continued to weave into the broader economy, wrote Neils Christensen for Kitco News on August 12.

Widespread increases have been reported across various component indexes, including medical care, airline fares, recreation, household furnishings and operations, and used vehicles. Rising shelter costs, which increased by 0.2% last month, were the main driver of headline inflation.

The gold market was gaining momentum in response to the inflation data, moving into positive territory for the day, Christensen wrote. Traditionally, higher inflation is seen as negative for gold, as it could lead the Federal Reserve to maintain a restrictive monetary policy. However, markets are still largely expecting a rate cut in September, as weak labor market data continues to overshadow rising consumer prices.

Analysts pointed out that this creates a favorable environment for gold: higher inflation combined with lower interest rates significantly reduces real yields, decreasing the opportunity cost of holding gold as a non-yielding asset, Christensen said.

Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report, noted that although headline inflation rose less than expected last month, it remains high and puts the U.S. central bank in a challenging position.

"While one data point does not make a trend, two consecutive months of higher 12-month inflation will make it difficult for the Fed to justify a rate cut at their September 17 meeting," he said. "We do not expect a September rate cut unless the jobs market drops off drastically over the next 45 days. If the Fed has to choose between shoring up the labor market or fighting inflation, we believe they will opt to backdrop the labor market."

This year, the trading activity of tokenized gold has skyrocketed to over US$19 billion, outpacing many prominent gold ETFs, as reported by David Marsanic for Crypto.news. Tokenized assets are increasingly viewed as a viable substitute for traditional investment avenues. A recent study from CEX.io, published on July 8, reveals that tokenized gold has gained more traction than various gold ETFs.

This pattern aligns with a broader trend where tokenized gold has consistently outstripped gold ETFs in trading volume growth for four consecutive quarters. The CEX.io report indicated that this points to a shift in investment from traditional gold ETFs to tokenized gold assets, as emphasized by Marsanic.

The report also highlighted that the increase in trading volume for tokenized gold is mainly fueled by retail and crypto-savvy investors, while institutional players continue to prefer traditional gold ETFs.

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$64.62 million. It trades in a 52-week range of CA$0.24 and CA$2.02.