Key Highlights
- Leveraged Bitcoin Treasury: Matador holds approximately 168 Bitcoin and funds its treasury through a combination of common equity and secured convertible debt.
- Convertible Note Facility: Matador has issued US$10.5 million principal amount of senior secured convertible notes under its US$100 million secured convertible note facility. The remaining US$89.5 million may be drawn in follow on closings, subject to regulatory approvals and other conditions.
- Capital Markets Tools: Since November 2025, the Company has put in place a C$80 million base shelf prospectus and, qualified under that shelf, a C$30 million at the market equity program, and amended its secured convertible note facility to expand at the market capacity. Shareholders will be asked to approve a new class of preferred shares on October 14, 2026.
- Cost Optimization: Management estimates that the Company’s cash operating expenditures currently average approximately C$125,000 per month, although monthly amounts vary, and that it continues to work toward a target of approximately C$100,000 per month, compared with average monthly net cash used in operating activities of approximately C$445,000 in the fiscal year ended October 31, 2025.
- Leadership: Donato Sferra was appointed Chief Executive Officer and Deven Soni was appointed Executive Chairman, each effective July 16, 2026.
TORONTO, Oct. 02, 2026 (GLOBE NEWSWIRE) — Matador Technologies Inc. (“Matador” or the “Company”) (TSXV:MATA)(OTCQB:MATAF)(FSE:IU3), the Bitcoin Ecosystem Company, today provided a corporate update summarizing developments in its capital structure, operations and governance since the beginning of its 2026 fiscal year on November 1, 2025.
During that period, the Company issued US$10.5 million principal amount of senior secured convertible notes under a US$100 million facility and used the proceeds to acquire 92 Bitcoin, established a C$80 million base shelf prospectus and a C$30 million at the market equity program qualified under that shelf, and reduced its cash operating expenditures to a current estimated average of approximately C$125,000 per month, with a target of approximately C$100,000 per month. Matador holds approximately 168 Bitcoin as its primary treasury asset. All dollar figures in this news release are stated in Canadian dollars unless otherwise indicated.
Bitcoin Treasury and Capital Structure
As at the date of this news release, Matador holds approximately 168 Bitcoin as its primary treasury asset, with approximately 138 Bitcoin held as collateral under the Company’s US$100 million secured convertible note facility (the “Facility”) and the senior secured convertible notes issued under it (the “Notes”).
Matador is structured as a leveraged Bitcoin treasury company that funds its Bitcoin holdings through a combination of common equity and secured convertible debt. Because a portion of the Company’s Bitcoin was acquired with borrowed capital, a change in the price of Bitcoin can have a proportionally larger effect on the Company’s net asset value attributable to common shareholders than on the value of the Bitcoin itself. This effect operates in both directions and can magnify losses as well as gains. The actual effect in any period will depend on factors including the Company’s operating costs, the cost of its debt and any issuances of common shares. The market price of the Company’s common shares may not reflect its net asset value at any given time.
Capital Markets Framework
The Company has assembled a set of capital markets tools intended to allow it to raise capital efficiently and to acquire additional Bitcoin when management considers that market conditions and its cost of capital make doing so accretive to Bitcoin held per share, while retaining the flexibility not to issue securities when they do not.
On December 22, 2025, the Ontario Securities Commission issued a final receipt for the Company’s C$80 million short form base shelf prospectus, which is effective for 25 months from that date. On February 3, 2026, the Company established an at the market equity program (the “ATM Program”) pursuant to an equity distribution agreement with ATB Cormark Capital Markets, permitting the Company to offer and sell common shares for aggregate gross proceeds of up to C$30 million at prevailing market prices on the TSX Venture Exchange (the “Exchange”). From the commencement of the ATM Program on February 4, 2026 to October 1, 2026:
- Common shares issued: 49,054,400
- Weighted average price per share: $0.0478
- Aggregate gross proceeds: $2,343,564.35
- Net proceeds: $2,233,171.24
Net proceeds from the ATM Program have been used for the purchase of Bitcoin, in support of the Company’s Bitcoin yield generation strategy, and for general working capital purposes.
The Facility has been amended twice during the period. A waiver and amendment agreement dated February 3, 2026 permitted the ATM Program under the terms of the Facility. Amendment No. 2, announced on August 17, 2026, introduced an alternative definition of a permitted at the market offering which, prior to any listing on a US senior exchange, removes the aggregate proceeds cap, pricing floor and daily volume limitations that previously applied to at the market issuances conducted under the Company’s Canadian shelf prospectus documents. In exchange, an amount equal to 10 percent of the net proceeds of each qualifying sale is applied to the purchase of Bitcoin, which is deposited as additional collateral under the Facility.
Proposed Preferred Share Class
As announced by the Company on August 28, 2026, the Exchange conditionally accepted, on August 25, 2026, a proposed amendment to the Company’s articles to create a new class of an unlimited number of preferred shares (the “Preferred Shares”). The amendment is presented to shareholders as Resolution #5 in the Company’s management information circular, and shareholder approval will be requested at the annual general and special meeting of shareholders to be held on October 14, 2026. The amendment remains subject to that approval and to final acceptance by the Exchange.
The Company has no current plans to issue Preferred Shares. Certain larger Bitcoin treasury companies, including Strategy Inc. (NASDAQ: MSTR), have used preferred equity as part of their capital structures, and the Company considers it prudent to have that option available. Because an amendment to the Company’s articles requires shareholder approval, which is ordinarily sought at the Company’s annual meeting, the Company will request that approval at the October 14, 2026 meeting so that the board of directors will have the flexibility to consider preferred equity in the future, should circumstances warrant, without waiting for a subsequent annual meeting. Any future issuance of Preferred Shares would require the approval of the board of directors and specific approval of the Exchange.
Cost Optimization and Operating Efficiency
Since the beginning of fiscal 2026, the Company has reviewed its operating cost structure and implemented several measures to reduce costs and improve efficiency. The Company has restructured its executive and consulting agreements and terminated certain consulting engagements that were no longer considered necessary. The Company has also adopted artificial intelligence based tools internally to automate certain tasks and to perform work that was previously carried out by external advisors, allowing more of its finance, reporting and administrative functions to be completed internally on a more efficient basis.
As a result of these measures, management estimates that the Company’s cash operating expenditures currently average approximately C$125,000 per month. This figure is an unaudited management estimate, is not a measure recognized under IFRS, and may vary from month to month, including as a result of non-recurring professional fees and costs associated with the Company’s financing activities. By comparison, net cash used in operating activities for the fiscal year ended October 31, 2025, as reported in the Company’s audited annual financial statements, was C$5,337,072, or an average of approximately C$445,000 per month. Expenditures in that period reflected the cost of establishing Matador as a public issuer and building the capital markets framework now available to it, including the reverse takeover completed on December 9, 2024, the Company’s change of business to a hybrid issuer and the professional work required to put its shelf prospectus and equity distribution arrangements in place. The Company continues to review its cost structure on a continuous basis and to look for further opportunities to operate more leanly, with the objective of reducing average monthly cash operating expenditures to approximately C$100,000. Management intends to continue optimizing the Company’s cost base beyond the reductions achieved to date, although there can be no assurance as to the amount or timing of any further reductions. Management’s objective is a lean, low cost treasury company with a durable long term business model that is better positioned to maintain its Bitcoin position through periods of price volatility.
Bitcoin Yield Generation and GODL, a Gold Asset Treasury Company
Matador conducts a Bitcoin yield generation strategy in collaboration with Galaxy Digital Holdings Ltd. (“Galaxy”) pursuant to an ISDA Agreement, principally through the systematic execution of covered calls, alongside other supplementary options and yield generation strategies facilitated by Galaxy. Premium income from the strategy is not dependent on an increase in the price of Bitcoin, although Bitcoin allocated to the strategy remains exposed to price movements and may be called away at strike prices below prevailing market prices. Premium income varies with market conditions, and there can be no assurance as to the amount of premium income in any future period.
GODL is being organized as a pure-play gold treasury company. GODL intends to acquire physical gold and gold-backed tokens and to measure its progress principally by reference to gold ounces per share (“GOPS”), being gold ounces held divided by fully diluted shares outstanding. GODL also intends to pursue a gold yield strategy, principally through specialist gold leasing, the writing of covered calls and, as that market develops, the lending of tokenized gold, with the objective of generating a positive net yield after costs that would be reinvested in additional gold in order to increase GOPS over time. There can be no assurance that GODL will generate a positive net yield in any period.
Matador has developed technology for the tokenization of gold and intends to monetize that technology by licensing it to GODL. Matador and GODL have negotiated a form of licence agreement (the “Licence”) under which GODL would be permitted to use Matador’s gold tokenization intellectual property to create, issue and manage tokenized gold products. The Licence has not been executed and its terms remain subject to change.
Under the arrangement as currently contemplated, Matador would receive a combination of cash consideration and common shares of GODL in connection with the closing of GODL’s first financing. Any shares received would be held by Matador and reflected in its net asset value, subject to the valuation and liquidity limitations that apply to a holding in a private company. The final terms, including the amount and form of consideration payable to Matador, may differ from those currently contemplated. The Licence and the transactions contemplated by it remain subject to Exchange approval and other regulatory requirements, and there can be no assurance that they will be completed or as to the value of any consideration Matador may receive.
The corporate structure by which GODL is established and taken public, and GODL’s legal name, remain under consideration and are subject to tax, regulatory and other considerations. Matador’s intention is to monetize its gold tokenization technology through this arrangement, which reflects the Company’s plans as at the date of this news release. The structure ultimately implemented may differ from the arrangement currently contemplated. In any structure, Matador intends that the value created through the monetization of its gold tokenization technology accrue to Matador shareholders. That value may be retained by Matador and reflected in its net asset value, or delivered to shareholders directly, including by way of a dividend or other distribution of securities. The manner and timing of any distribution to shareholders have not been determined and would be subject to the receipt of any required regulatory, Exchange and shareholder approvals. There can be no assurance that any distribution will be made.
GODL is also planning an equity financing and a subsequent public listing on a Canadian stock exchange. The structure, size, pricing and timing of any such financing and listing have not been determined and would remain subject to market conditions, the receipt of regulatory, exchange and shareholder approvals and the satisfaction of other conditions. There can be no assurance that GODL will complete a financing or obtain a listing on the terms contemplated, within the timeframe contemplated, or at all. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of GODL.
Hybrid Issuer Status
Matador is classified by the Exchange as a hybrid technology and investment issuer, which permits the Company to make investments in addition to carrying on its technology activities. Under its investment policy, the Company may invest in any industry, with a focus on the Bitcoin, cryptocurrency and precious metals sectors. Potential investments may include digital assets, securities of public and private companies, precious metals, credit products, derivatives, exchange traded funds and other financial instruments, subject to the restrictions in that policy. Bitcoin remains the Company’s primary treasury asset and the principal focus of its capital allocation.
Leadership
Geoff St. Clair, who had served as Vice President, Finance since the Company’s inception, was appointed Chief Financial Officer effective March 26, 2026. Effective July 16, 2026, Donato Sferra, a co-founder and director of the Company, was appointed Chief Executive Officer, and Deven Soni was appointed Executive Chairman.
Outlook
Management believes that Bitcoin has the potential to serve as a long term store of value and reserve asset, and that its role within the global financial system will continue to develop. Matador is intended to provide investors with a publicly listed vehicle through which to obtain exposure to Bitcoin, with that exposure amplified by the Company’s capital structure and supplemented by its yield generation activities. Management intends to pair that exposure with a lean, low cost operating structure, with the objective of building a durable long term business that can maintain its Bitcoin position through periods of price volatility. These are management’s views and are not a prediction of future Bitcoin prices or a guarantee of the Company’s performance. The price of Bitcoin has historically been highly volatile, and an investment in the Company carries risks that differ from, and may be greater than, those of holding Bitcoin directly.
Donato Sferra, Chief Executive Officer of Matador, commented: “Matador’s capital structure reflects a clear view on Bitcoin, and we are open about the fact that it works in both directions. Over the past year we have put the tools in place to add Bitcoin when our cost of capital allows it, and we have brought the cost of running the Company down to a level that matches the business we are today. We are pleased with that progress, and we believe it leaves Matador in a stronger position to pursue future opportunities while remaining disciplined in how we deploy capital.”
Matador intends to remain focused on the priorities described in this news release: holding Bitcoin as its primary treasury asset, using its capital markets tools when management considers doing so accretive to Bitcoin held per share, generating premium income through its yield generation strategy, maintaining a reduced operating cost base, and advancing the licensing of its gold tokenization technology to GODL. Each of these activities remains subject to market conditions and, where applicable, to regulatory, Exchange and shareholder approvals, and there can be no assurance as to the outcome or timing of any of them. The Company expects to provide further updates as developments warrant.
Media Contact:
Donato Sferra
Chief Executive Officer
Email: donato@matador.network
Phone: 647.496.6282
About Matador Technologies Inc.
Matador Technologies Inc. (TSXV:MATA, OTCQB:MATAF, FSE:IU3) is a publicly traded Bitcoin ecosystem company focused on holding Bitcoin as its primary treasury asset and building products to enhance the Bitcoin network. Matador’s strategy combines strategic Bitcoin accumulation, Bitcoin native product development, and digital asset treasury management, with active participation across blockchain and digital assets infrastructure, all with a focus on disciplined capital allocation and cost efficient treasury management.
With a Bitcoin first strategy, and a clear focus on innovation, Matador is shaping the future of financial infrastructure on Bitcoin.
Visit us online at https://www.matador.network/
Cautionary Statement Regarding Forward Looking Information
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
This news release contains “forward looking information” within the meaning of applicable Canadian securities laws. All statements that are not historical facts are forward looking statements, including, without limitation: (i) statements regarding the effect of the Company’s capital structure on its net asset value; (ii) statements regarding management’s views on Bitcoin and the repayment or conversion of the Notes; (iii) statements regarding the Company’s intended use of the ATM Program, the base shelf prospectus and the Facility, including any follow on closings under the Facility and the application of a portion of the net proceeds of qualifying sales to the purchase of Bitcoin as additional collateral; (iv) statements regarding the proposed Preferred Shares, including shareholder approval, final acceptance by the Exchange and any future issuance; (v) statements regarding the Company’s Bitcoin yield generation strategy and future premium income; (vi) statements regarding the Licence and the transactions contemplated by it, including the final corporate structure by which GODL is established and taken public, GODL’s proposed gold treasury strategy, its intended gold yield strategy, its proposed equity financing and public listing, any cash fee or shares Matador may receive, and any distribution of value to Matador shareholders; (vii) statements regarding the Company’s estimated cash operating expenditures and potential further cost reductions; and (viii) statements regarding potential investments within the digital asset ecosystem.
Forward looking information is based on management’s reasonable assumptions at the time such statements are made, including assumptions regarding market conditions; the price and liquidity of Bitcoin; the Company’s ability to access capital markets on acceptable terms; the Company’s continued compliance with the terms of the Facility; the receipt of all required regulatory and shareholder approvals; the continued availability of the ISDA Agreement with Galaxy; the Company’s ability to sustain its cost reduction measures without disruption to its operations; gold market conditions remaining supportive of GODL’s treasury strategy; and the receipt of the regulatory, exchange and shareholder approvals required for the transactions contemplated by the Licence and for GODL’s proposed financing and listing.
Forward looking statements are subject to various risks and uncertainties, including: fluctuations in the price and trading volume of Bitcoin, the effect of which on the Company’s net asset value is magnified by its use of debt; the risk that the price of Bitcoin does not exceed the Company’s acquisition cost and the costs of maintaining the Facility over the term of the Notes; the Company’s obligations under the Facility, including repayment at maturity and the potential consequences of an event of default; the risk that no additional Notes are issued under the Facility; custody and security risks related to digital assets; the timing and amount of future sales under the ATM Program, if any, and resulting dilution to shareholders; the receipt of shareholder approval and final Exchange acceptance of the Preferred Shares; the performance of covered call and other options strategies and counterparty risk in respect of Galaxy; the execution of the Licence on the terms negotiated, or at all; the determination of the final corporate structure by which GODL is established and taken public; the receipt of approvals for, and the completion of, the transactions contemplated by the Licence; the form and value of any consideration received, including the valuation and liquidity of any shares of GODL held by Matador; the unsecured nature of GODL’s payment obligations to Matador; whether any value from the gold business is ultimately distributed to Matador shareholders, and the manner and timing of any such distribution; GODL’s ability to complete its proposed equity financing and to obtain a public listing on a Canadian stock exchange, or at all; the realization of any net yield on GODL’s gold holdings and its reinvestment in additional gold; volatility in the price of gold; the performance and adoption of tokenized gold products; counterparty and custody risk in respect of physical gold held in LBMA accredited vaults and tokenized gold held with digital asset custodians; the risk that the Company’s actual cash operating expenditures differ from management’s estimate, that further cost reductions are not realized, or that reduced reliance on external advisors affects the Company’s operations; risks associated with any investments the Company may make as a hybrid issuer; evolving regulatory treatment of digital assets; and general market conditions.
Forward looking statements are provided to offer information about management’s current expectations and plans as of the date of this news release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such forward looking information. The Company undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities law.
SOURCE: Matador Technologies Inc.
