Canada’s Matador Technologies Joins The Bitcoin Bandwagon

Matador Technologies is the latest corporate organization to allocate funds to the acquisition of Bitcoin (BTC).

In a recent announcement, the Canadian company confirmed that its Board of Directors unanimously approved the addition of Bitcoin and USD-denominated assets to its corporate treasury.

This move comes off as one of Matador’s long-term capital preservation strategies.

Here’s Why Matador Made Allocation to Bitcoin

Before making this decision, the board identified the risks associated with its current treasury.

Noteworthy, the said treasury is primarily denominated in Canadian dollars. As it stands, Canadians are concerned with the country’s current economic and monetary outlook.

Canada largely relies on its oil exports, in addition to its rising national debt. Both situations contribute significantly to the concerns of residents and companies

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Some entities foresee an impending devaluation of the Canadian dollar and loss of purchasing power, especially for Canadian-denominated assets.

Adding Bitcoin and USD-denominated assets to its corporate treasury is the Board’s way of addressing these concerns. For a start, Matador plans to push an initial allocation of $4.5 million into the purchase of Bitcoin.

This first purchase is scheduled to happen this month. From there, Matador will continue to explore additional purchases at the board level via measured buying programs.

The move reflects the Canadian firm’s belief in Bitcoin as a store of value asset that caters to the risks of currency debasement.

“Matador’s Board and management believe in using Bitcoin to future-proof our treasury,” said Sunny Ray, President of Matador.

Corporate Firms and Bitcoin Bets

The act of adopting Bitcoin and adding it to treasury reserves is becoming a common occurrence amongst many companies and developed countries.

President Nayib Bukele of El Salvador recently announced plans to purchase 20,000 Bitcoin to add to its large holding. This brought the total Bitcoin holding of the Central American nation to 5,994, valued at over $580 million.

Asian MicroStrategy, or Metaplanet, has also revealed its intention to acquire an additional 619 Bitcoin.

The American business intelligence and software firm MicroStrategy has recently been investing consistently in the flagship cryptocurrency. Three weeks ago, it made a Bitcoin purchase of 15,400 BTC worth $1.5 Billion.

Earlier today, it acquired another 5,262 Bitcoin units for $561 million

With how much it believes in the potential of BTC, Chairman Michael Saylor even proposed the coin as a solution to the United States’ $36 trillion debt.

Bitcoin Market Outlook

Bitcoin price was trading at $93,197.33, down 2.17% over the past 24 hours. Following recent price drawdowns, it is 15% lower than its All-time-high (ATH) of $108,000, attained in the past week.

A few experts think the coin could fall further than its current market price. A recent report adapted from The Kobeissi Letter hinted at a potential BTC crash to $20,000.

The dip could come in a few weeks, or a rally may take place as critics projected.

The report pointed at Bitcoin’s relation with the global monetary supply, citing that a massive dip could be ahead if the crypto continues to move in tandem.

To further underscore the potential of the dip, the broader crypto market is experiencing highly volatile trading. This makes an extended cool-off more feasible.