Matador Technologies secures $100 million facility for bitcoin purchases

Matador Technologies Inc. (TSXV: MATA) announced it has entered into a secured convertible note facility agreement with ATW Partners for up to $100 million to purchase bitcoin for its treasury.

The company will receive an initial $10.5 million tranche, with $89.5 million in additional capacity available subject to regulatory approvals and execution of a registration-rights agreement. The facility exclusively supports Matador's bitcoin accumulation strategy.

The convertible notes carry an 8% annual interest rate with approximately two-year maturity terms. The initial tranche is secured by 1.5 times bitcoin collateral, while future tranches require 1.0 times bitcoin collateral. The initial conversion price is set at CAD $0.72.

"This financing represents meaningful progress toward our long-term Bitcoin accumulation goals," said Deven Soni, CEO of Matador Technologies. "It provides the Company with capital to increase our Bitcoin holdings in a way that minimizes immediate dilution and aligns with our broader capital strategy."

The funding supports Matador's stated targets of acquiring up to 1,000 bitcoin by 2026 and 6,000 bitcoin by 2027. The company aims to become a top 20 global corporate bitcoin holder and eventually hold 1% of bitcoin's total supply.

Joseph Gunnar & Co., LLC served as placement agent for the transaction, receiving a 5% cash placement fee, 2.5% advisory fee, and 5% fee in warrants for the initial closing.

The notes and common shares upon conversion will be issued outside Canada under Ontario Securities Commission Rule 72-503, exempting them from Canadian statutory hold periods.

You May Also Be Interested In

• Microsoft is planning to merge its consumer and enterprise Copilot chatbots in August - The Information
• CrowdStrike (CRWD) PT Raised to $185 at Canaccord
• Two Harbors stockholders approve CrossCountry Mortgage merger at $12 a share