TechFlow news, December 16 — Matador Technologies Inc. (TSXV: MATA) announced it has revised the terms of its $100 million convertible note financing agreement with ATW Partners and completed the first tranche closing of $10.5 million. In response to review requirements from the Ontario Securities Commission, the company issued a corrected disclosure removing statements such as "holding 6,000 bitcoins by 2027" and "holding approximately 1% of the total bitcoin supply."
Under the revised agreement, the financing proceeds will be exclusively used for purchasing bitcoin to drive growth in per-share bitcoin holdings. The notes carry an annual interest rate of 8%, which will reduce to 5% upon the company's listing on NASDAQ or NYSE from TSXV. The notes are secured by bitcoin collateral, amounting to 150% of the principal (for the initial closing) or 100% (for subsequent closings).
"This financing marks a significant step in our long-term bitcoin accumulation strategy, providing the capital needed to expand our bitcoin holdings while limiting near-term dilution and remaining aligned with our overall capital strategy," said Matador CEO Deven Soni. The company plans to acquire up to 1,000 bitcoins by 2026.
