Matador Technologies, a Canadian real-world asset tokenization company, has announced plans to incorporate Bitcoin into its treasury. THE This decision, unanimously approved by the company’s board of directors, aims to strengthen long-term capital preservationaccording to a recent statement.
The company plans to allocate $4.5 million In Bitcoin this month like part of an initial investment, with additional purchases to be considered through measured purchasing programs.
Alongside Bitcoin, Matador intends to convert the majority of its cash reserves from the Canadian dollar to the U.S. dollar, citing concerns about Canada’s economic vulnerabilities.
EXPLORE: 10 Best Decentralized Exchanges for September 2024
Matador uses Bitcoin to sustain its cash flow
Sunny Ray, president of Matador, highlighted the decision as a means to “future-proof” the company’s cash flow while aligning with its mission to develop blockchain-based gold products.
“Matador’s board and management believe in using Bitcoin to future-proof our cash flow. This milestone also supports our mission to explore the use of Bitcoin as a platform for our gold-based products.
Matador’s Bitcoin Treasure is expected to support the launch of its digital gold platform next year. This innovative platform will allow users to purchase, trade, and store tokenized gold backed by physical reserves.
Matador joins a growing list of companies leveraging Bitcoin as a strategic reserve. Earlier in In December, biopharmaceutical company Quantum BioPharma disclosed a $1 million Bitcoin purchase to diversify its cash flow.
JUST IN:
Publicly traded Matador Technologies Inc. approves $4.5 million purchase #bitcoin as a strategic reserve asset. pic.twitter.com/WzlGTgwjG7
– Bitcoin Magazine (@BitcoinMagazine) December 23, 2024
Publicly traded Matador Technologies Inc. approves $4.5 million purchase Similarly, Canadian wellness company Jiva Technologies and video sharing platform Rumble recently approved plans to allocate a significant portion of their cash reserves to Bitcoin.
“For Matador’s focus on creating a product that exemplifies trust, permanence and value, we expect Bitcoin to be the platform of choice,” said Deven Soni, CEO and President by Matador.
EXPLORE: Best Bitcoin Mining Pools in 2024
US States Consider Adding Bitcoin to Reserves
Ohio became the last American state to consider adding Bitcoin to its cash reserves, following the introduction of a new bill by House Republican Leader Derek Merrin.
The initiative mirrors recent moves by Texas and Pennsylvania to establish Bitcoin reserves.
On December 12, 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Actwhich proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.
Pennsylvania took a similar step in November, with Rep. Mike Cabell proposing a bill allowing his Treasury to allocate up to 10% of its balance sheet to Bitcoin, citing the asset’s potential to protect against economic uncertainty .
The growing momentum around state-level Bitcoin reserve initiatives comes amid renewed interest in the idea of a federal reserve of Bitcoin, a concept launched by former President Donald Trump after his re-election campaign.
Most recently, Trump has hinted at plans for a US strategic Bitcoin reserve similar to the country’s strategic oil reserve. Speaking to CNBC, Trump said“We’re going to do something great with crypto because we don’t want China or anyone else – not just China but others adopting it – and we want to be the leader. “
EXPLORE: 20 new crypto coins to invest in 2024
The post Canadian RWA tokenization company Matador Technologies adds Bitcoin to its treasury appeared first on 99Bitcoins.
