Matador Trims the Fat, Sharpens Its 168-Bitcoin Treasury Strategy

Key Investor Takeaways

• Matador holds approximately 168 Bitcoin, with approximately 138 pledged as collateral under its US$100 million secured convertible note facility.
• Monthly cash operating expenditures now average about CA$125,000, with a target of CA$100,000, down about 72% from an average of approximately CA$445,000 in the prior fiscal year.
• CEO Donato Sferra told Streetwise Reports the company's financing tools are in place and its focus has shifted to being the leanest company in the digital asset treasury space.
• The company has issued US$10.5 million in notes, which funded the purchase of 92 Bitcoin; the remaining US$89.5 million may be drawn, subject to regulatory approvals.
• Under a CA$80 million base shelf, a CA$30 million ATM program has raised net proceeds of about CA$2.23 million since February, and 10% of net proceeds from qualifying sales now goes to buying Bitcoin held as added collateral.
• Shareholders vote October 14 on creating preferred shares, a structure used by larger Bitcoin treasury companies; Matador says it has no current plans to issue any.
• Matador runs a covered-call yield strategy with Galaxy Digital and plans to license its gold tokenization technology to GODL, a gold treasury company being organized.
• The company cautions that its use of leverage can magnify losses as well as gains as the price of Bitcoin changes.