Crypto Firm Finds High-Grade Bitcoin Treasury Potential

1. Matador Technologies Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Matador Technologies Inc. and Metalpha Technology Holding Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Matador Technologies Inc. (MATA:TSX.V; MATAF:OTCQB) announced it has received conditional approval from the TSX Venture Exchange to complete its previously announced change of business (COB) and has also increased its Bitcoin holdings.

The COB, which the company expects to complete around July 4, transitions Matador to a hybrid technology/investment entity as categorized by TSX-V regulations.

Matador will have the opportunity to broaden its business model to include activities that align with its investment strategy and TSX-V standards, including the procurement and management of Bitcoin, as well as investments in Bitcoin-related technologies and infrastructure.

This new framework grants the firm enhanced operational flexibility within the digital asset landscape.

"This marks an important milestone on our journey," Chief Executive Officer Deven Soni said. "With conditional approval in place, we are one step closer to advancing our Bitcoin treasury strategy and supporting Bitcoin-native innovation globally, subject to final TSX-V approval."

The COB allows Matador to:

• Advance its Bitcoin accumulation strategy, implementing a structured approach as a public entity.
• Make equity investments in Bitcoin-centric businesses and technologies, including custody, mining, tokenization, and related infrastructure.
• Continue to enhance its digital gold platform with its Grammies product series, which connects physical gold to inscriptions on the Bitcoin blockchain.
• Allocate resources in targeted international markets, such as India, where the use of digital assets and gold demand are firmly established.
• Operate with increased flexibility throughout the Bitcoin ecosystem.

Co. Draws Inspiration From Other Public Cos.

Matador's stock has more than doubled in the last month. The company said its strategy draws inspiration from other publicly traded entities, notably Metaplanet Inc. (3350:TYO; MTPLF:OTCMKTS), a Japanese firm that has adopted a Bitcoin treasury framework. Metaplanet has focused on raising capital and acquiring Bitcoin within a regulated public market environment in Japan, where there is a growing institutional interest in cryptocurrency and a highly supportive monetary policy continues.

The company said it observes similarities between these conditions and those emerging in India, where inflationary concerns, an increasing desire for alternative assets, and evolving regulatory clarity regarding digital assets are sparking renewed enthusiasm for Bitcoin as a means of preserving value. Furthermore, India's robust technological landscape and growing capital markets foster a conducive environment for a corporate strategy aligned with Bitcoin. Pending final approval from TSX-V, Matador plans to implement a similar strategy in selected regions, including India, where it can responsibly back Bitcoin-focused enterprises and support infrastructure development.

The approval would bring the company "closer to allocating capital to companies building core infrastructure across the Bitcoin ecosystem," Soni said.

Also stirring the mix are stablecoins, cryptocurrencies pegged to other assets, often the U.S. dollar.

Recently, the Senate approved new legislation aimed at regulating stablecoins. If the bill — now moving to the House for a vote — becomes law, proponents believe it could enhance the adoption of dollar-linked stablecoins.

Manager of the stablecoin USDC, Circle Internet Group Inc., had a splashy IPO earlier this month, its stock surging 33% after the Senate passed the Genius Act, a landmark bill offering regulatory clarity for stablecoins and stablecoin issuers.

'555 Million Plan'

Metaplanet's board of directors has approved a capital injection of up to US$5 billion for its U.S. subsidiary, Metaplanet Treasury Corp., in a bid to speed up its Bitcoin BTC acquisition strategy. The Japanese hotel company set up its Florida-based subsidiary on May 1, aimed at expanding its global Bitcoin treasury operations.

The contribution is expected to significantly accelerate the implementation of its "555 million plan," disclosed earlier on June 6, the company said in a statement. Metaplanet's strategic objective is to accumulate up to 210,000 BTC by the end of 2027, leveraging the deep capital markets and advanced institutional infrastructure in the U.S. to optimize acquisition and management processes.

This U.S. expansion aligns with the company's broader vision to establish a globally integrated treasury model that supports shareholder value, improves treasury yield efficiency, and strengthens its leadership in Bitcoin capital markets.

In May, Dominic Frisby, author of The Flying Frisby newsletter, noted that Metaplanet was "formerly a zombie hotel company, now known as the 'Asian MicroStrategy.' It has bought some 5,555 Bitcoin.

It bought another 555 this week after it issued its 13th set of bonds. The stock rose 40% on the news. Since spring 2024, when the company began its strategy, the stock has gone from below ¥20 to north of ¥600."

About 4% of Metaplanet is owned by insiders and management, about 6% by strategic corporate entities, and 16% by institutions. The rest is retail.

Top shareholders include MMXX Ventures Ltd. with 6.11%, Capital Research Global Investors with 5.59%, Evolution Capital Management LLC with 2.99%, Simon Morris. Gerovich with 2.38%, and The Vanguard Group Inc. with 1.34%.

Its market cap is 987.93 billion Japanese yen with 654.69 million shares outstanding. It trades in a 52-week range of 44.70 yen and 1.93K yen.

Metalpha Technology Holding Ltd.

Hong Kong-based Metalpha Technology Holding Ltd. (MATH:NASDAQ; D92:FSE) has completed a reorganization process aimed at enhancing its position in the digital asset wealth management sector. Established in 2021, the firm specializes in offering tailored investment solutions to institutional investors and high-net-worth individuals.

This recent development follows the company's rebranding from Dragon Victory International and a restructuring initiative undertaken in collaboration with partner Antalpha Technologies.

"The crypto industry continues to have room for growth, despite its challenges this year," said Metalpha founder and Chief Executive Officer Adrian Wang. "We are looking very closely at how to build a stronger and healthier global market for digital assets, which we are doing together with our partners, such as Antalpha, and many others."

Moreover, Metalpha, which does not cater to the mainland China region, aims to deliver enhanced products and trading functionalities to its clients. The company also intends to expand its workforce at its Hong Kong headquarters in the future.

MATH said it is "dedicated to providing digital asset-focused wealth management services with a full-service, institutional-grade platform." The company said it has dedicated blockchain expertise and aims to become a leader in the field of digital asset-focused wealth management services, bringing robust innovation and transparency to the customers and businesses it serves.

Writing for Money Morning on June 18, Joshua Enomoto said MATH recently lost double-digits of equity value. "But in fairness, MATH has also gained almost 163% year-to-date, implying that this is a solid enterprise facing temporary hardships," he wrote.

Price Target Research on June 5 rated the stock a "C," but noted the company's important characteristics included "very high profitability (and) high expected growth."

According to Refinitiv, about 11% of the company is owned by insiders and management, about 25% by strategic corporate entities, and 11% by institutions. The rest is retail.

Top shareholders include Antalpha with 15.31%, KBR Fund Management Ltd. with 10.46%, Folius Ventures LLC with 9.95%, Bingzhong Wang with 3.13%, and Limin Liu with 3.04%.

Its market cap is US$117.81 million with 38.37 shares outstanding. It trades in a 52-week range of US$0.80 and US$4.17.

Matador Plans to Boost Bitcoin Position for Global Transition

Matador announced that it had purchased an additional 8.4 Bitcoins for CA$1.2 million (US$878,763). The Bitcoins were purchased at an average cost of US$104,914 each, inclusive of associated fees and expenses. This acquisition followed a recent market adjustment and aligns with the company's policy for Bitcoin acquisition, further solidifying its belief in Bitcoin as a long-term investment.

This latest purchase brings Matador's total Bitcoin holdings to roughly 77 Bitcoins (and Bitcoin equivalents), reinforcing its goal of diversifying its treasury with long-term reserve assets. The company maintains a debt-free status, with all Bitcoins (and Bitcoin equivalents) fully owned.

Additionally, the company retains cash reserves of about CA$5.3 million and possesses 2 kilograms of physical gold (valued at approximately CA$323,000), reflecting careful financial stewardship aimed at fostering long-term stability and growth.

Matador is committed to integrating Bitcoin into its long-term business strategy, reaffirming its position as a primary treasury asset and the cornerstone of its Digital Gold Platform. In line with other Bitcoin-oriented public companies, Matador regards Bitcoin as a more robust reserve asset and plans to sustainably increase its Bitcoin holdings over time.

"This acquisition signifies the company's desire to enhance its Bitcoin per share ratio as part of its strategy for reserve assets," Chief Visionary Officer Mark Moss said. "The company aims to continuously boost its Bitcoin position to align with the global transition toward sound monetary assets."

The company said it also recently established a strategic advisory board featuring industry pioneers with extensive knowledge in Bitcoin, gold, and global capital markets. Members include David Bailey, the CEO of BTC Inc., general partner at UTXO Management LLC, and a founding member of Bitcoin-centric holding company Nakamoto; Brad Mills, a Bitcoin entrepreneur and investor celebrated for his involvement in early-stage Bitcoin infrastructure and investments in digital assets; and Dave Forestell, a legal and regulatory expert with considerable experience in natural resources, public markets, and policy.

These advisors equip Matador with a distinctive combination of strategic perspectives, merging institutional knowledge of Bitcoin capital markets, traditional gold infrastructure, and international regulatory landscapes.

The Catalyst: Tokenized Gold Value Hits New Mark

U.S. President Donald Trump is also increasingly being seen as an important figure in the crypto movement and has even created his own meme coin, "$TRUMP." He also called on the House to pass the GENIUS Act passed by the Senate, which lays out a regulatory framework for payment stablecoins.

On Tuesday, gold prices decreased by over 1%, influenced by events in the Middle East, as stated by FX Street on Wednesday.

Additional pressure on gold prices rose from the anticipation that Federal Reserve Chair Jerome Powell may not be inclined to rush into further interest rate reductions, particularly as inflation continues to exceed long-term goals and the Fed assesses the unfolding effects of import tariffs, according to the report.

A CoinTelegraph article from April mentioned that the volume of tokenized gold reached US$1 billion for the first time since the banking crisis.

Statista projects that the global cryptocurrency market revenue will reach an impressive US$45.3 billion during this period. The average revenue for individual participants is expected to be US$52.70 in 2025, and the total participant count in the market is likely to surpass 861 million, as highlighted by Statista.

Analysts suggest that the bullish trend in precious metals is projected to persist. Garth Friesen noted in a Forbes report from March 15 that Jeffrey Gundlach, CEO of DoubleLine, stated, "I think gold will make it to US$4,000. I'm not sure that'll happen this year, but I feel like that's the measured move anticipated by the long consolidation at around US$1,800 on gold."

Furthermore, in a post dated April 10 on Goldfix, it was reported that Goldman Sachs has adjusted the upper limit of its end-of-year price forecast to US$3,520 per ounce and even proposed a "tall-risk scenario" that could reach as high as US$4,500 per ounce.

Ownership and Share Structure

According to the company, 65% is owned by management and insiders, including Founder and Director Donato Sferra, Vice President of Finance Geoff St. Clair, Director Richard Murphy, Soni, a strategic investor (through UTXO Management, LLC and 210K Capital, LP), Director Tyler Evans (through UTXO Management, LLC and 210K Capital, LP), and Founder Trevor Koverko, among others. 

The rest, about 35%, is retail, and includes Hive Digital with 3%, Kitco Metals with 1%, and Gold Fields Ltd. with 4%, the company said.

It has about 105.77 million shares outstanding and has a market cap of CA131.09 million at the time of writing. It trades in a 52-week range of CA$0.11 and CA$2.02.