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Crypto Potato 2024-12-26 04:27:34

Matador Technologies Adds Bitcoin to Treasury Amid Diversification Push

Canadian crypto firm Matador Technologies announced a major shift in its capital preservation strategy this week after its Board of Directors unanimously approved the addition of Bitcoin and USD-denominated assets to its corporate treasury. The goal behind this decision is to mitigate risks associated with the company’s reliance on Canadian dollar-denominated assets, which marks a pivotal move toward diversifying its reserves. Matador Embraces Bitcoin Citing concerns over Canada’s dependence on oil exports and rising national debt, Matador highlighted the potential devaluation and loss of purchasing power of the Canadian dollar as key motivators. As part of its strategy, the company will make an initial $4.5 million allocation to Bitcoin in December 2024. It will also consider further acquisitions through measured buying programs. The firm also plans to transition the majority of its cash reserves from CAD to USD. Matador expressed its confidence in Bitcoin’s role as a long-term store of value, particularly as institutional interest in the cryptocurrency continues to rise across the world. The move also aligns with a growing trend among corporations seeking to hedge against currency debasement and explore alternatives to traditional financial assets like bonds. The latest move is also expected to drive Matador’s digital gold platform, which will enable users to trade digital gold backed by reserves at the Royal Canadian Mint. The Board picked Bitcoin over alternatives due to its stability, security, and growing use by institutions, making it the strongest foundation for the project, the company said in a statement . Following the development, Sunny Ray, President of Matador, commented, “Matador’s Board and management believe in using Bitcoin to future-proof our treasury. This step also supports our mission to explore using Bitcoin as a platform for our gold-based products.” Bitcoin Adoption Boom Firms like MicroStrategy , Metaplanet , and more have ramped up their Bitcoin holdings, while others have newly joined the growing trend. New research revealed that Bitcoin’s institutional adoption has grown significantly. As reported, BTC holdings rose to 31% of total supply. MicroStrategy leads with 440,000 BTC, worth over $46 billion. Meanwhile, ETFs have attracted large inflows, while the US, China, and El Salvador maintain substantial reserves. Combined, governments hold 2.45% of Bitcoin’s circulation, which is almost $49.36 billion. Additionally, several US states, including Ohio , Pennsylvania, and Texas, are exploring Bitcoin reserves as a strategy to safeguard public funds and adapt to modern financial innovations. The post Matador Technologies Adds Bitcoin to Treasury Amid Diversification Push appeared first on CryptoPotato .

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