Matador Technologies

https://www.matador.network/press-releases

Bitcoin Reserve Strategy Systematic increase in holdings: Through mixed financing methods such as stock issuance and convertible bonds, all funds will be used to purchase Bitcoin. As of July 2025, 77.4 Bitcoins have been held, with a clear increase target set — to reach 1,000 Bitcoins by the end of 2026, and to increase to 6,000 Bitcoins by the end of 2027, with the target holding accounting for 1% of the total Bitcoin supply. Use of financing leverage: In July 2025, a prospectus for 900 million Canadian dollars will be submitted, planning to support increased holdings through multiple channels of financing such as equity and debt. For example, in January 2025, 29 bitcoins were purchased for 4.5 million Canadian dollars (approximately 3.12 million USD), with an average cost of 96,341 USD per coin, achieving asset appreciation through low-price purchases. Blockchain Application Development Digital Gold Product: In July 2025, the Bitcoin on-chain digital artwork "Grammies" will be launched, with each piece corresponding to 1 gram of physical gold. Users can obtain ownership and display it online by purchasing digital inscriptions. This product combines blockchain technology to achieve asset digitization and expands the application scenarios of the Bitcoin ecosystem.

Bitcoin appreciation income (core) Asset price fluctuations: By increasing holdings of Bitcoin at a low price, capital gains are realized through its price increase. For example, 29 Bitcoins purchased in January 2025, based on the current market price (approximately $118,000 per coin), have generated an unrealized gain of about $630,000. Financing leverage effect: Using low-interest funds (such as convertible bond interest rate 2.1%) to purchase Bitcoin, leveraging the difference between Bitcoin's historical annualized return rate (15- 20%) and the cost of funds to amplify returns. Digital gold product revenue Artwork sales commission: "Grammies" digital inscriptions are sold through auctions or fixed prices, with the company taking a certain percentage as commission. For example, the first piece sold for 1.2 bitcoins, and Matador received a 15% service fee (approximately $21,000). Derivative service fees: Providing holders with gold custody, insurance, and secondary trading platform services, charging an annual fee based on asset value (0.5% - 1%). Capital operation income Equity appreciation: The Bitcoin reserve strategy drives the company's market value growth, with a 474% increase in market value from July 2025 compared to the transformation in November 2024, attracting institutional investors like ARK Invest to increase their holdings.

Financial Structure Optimization Bitcoin reserves account for 68% of total assets (approximately 9 million USD), becoming a core asset class and significantly enhancing inflation resistance. In Q2 2025, due to the rise in Bitcoin prices, the company's net asset liability ratio decreased from 120% to 95%. Hedging risks against traditional businesses: When fluctuations in the financing market lead to a slowdown in increases (for example, a 12% year-on-year decline in financing in Q1 2025), the appreciation gains from Bitcoin holdings can offset the funding gap. Technical Strategy Extension The "Grammies" project promotes the company's transformation from a mere Bitcoin holder to a "digital asset service provider," with expected revenue contribution reaching 15% by 2026. This product also lays the foundation for the future issuance of corporate tokens or cross-chain financial instruments. Cooperate with Bitcoin mining companies to develop low-power mining machine solutions, exploring edge computing scenarios that combine Bitcoin computing power with IoT devices. Market value reassessment The Bitcoin reserve strategy increased the company's price-to-earnings ratio from 12 times to 25 times, and it was included in the Bitwise IoT & Blockchain Index, becoming the first ETF component stock to cover both Bitcoin reserves and blockchain applications, driving the stock price up 30% in July 2025.

Direct impact Bitcoin ( BTC ): Demand side: By Q2 2025, a total of 462 Bitcoins will have been accumulated, accounting for 3.8% of the net on-chain issuance during the same period, boosting the purchasing sentiment of institutional investors. For example, a single transaction on July 14 that accumulated 29 Bitcoins led to a temporary increase of 0.3% in the depth of the Bitfinex order book. Market structure: If the target of holding 6,000 coins is reached by 2027, it will become one of the top 20 Bitcoin holders globally, potentially affecting market liquidity premiums. Indirect influence Stablecoins (USDC/USDT): As a medium for the exchange between fiat currency and Bitcoin, in Q2 2025, the exchange of USDC through the Binance platform reached 2 million USD, accounting for 0.5% of the platform's USDC trading volume. Gold Market: The "Grammies" product combines physical gold with Bitcoin, which may attract traditional gold investors into the cryptocurrency space, indirectly promoting the recognition of Bitcoin's value storage properties.