Matador Technologies reports about 168 bitcoin, roughly 138 pledged
The TSX Venture company has issued US$10.5 million of secured convertible notes and will seek shareholder approval for preferred shares on Oct. 14.
Julian Okafor
About 138 of the roughly 168 bitcoin held by a Canadian treasury company are pledged as loan collateral, placing a secured claim ahead of common shareholders on most of its coins. Matador Technologies Inc. CVEMATA OTCMKTSMATAF, a Toronto bitcoin treasury company that also develops bitcoin-native products, said on Oct. 2 it had issued US$10.5 million of senior secured convertible notes.
At 9:56 a.m. EDT on Friday, Oct. 2, the CVEMATA quote showed Matador shares unchanged at C$0.030 on the TSX Venture Exchange. Matador says its common-share price can differ from the net asset value attributable to shareholders at a given time.
In its April 17 treasury release, Matador reported 168.2 direct bitcoin after a two-coin purchase, plus 7.4 bitcoin equivalents calculated from Satoshi assets. The Oct. 2 count of about 168 direct bitcoin is roughly level with April's direct-coin tally; the new release does not provide a comparable equivalents figure.
The next scheduled capital-structure step is an Oct. 14 shareholder vote on an amendment creating a class of preferred shares, subject to final TSX Venture Exchange acceptance. Matador says it has no current plan to issue that class, and any later issuance would need its board's and the exchange's specific approval.
Secured Notes Back 92 Bitcoin Purchases
The issued notes funded 92 bitcoin purchases during the fiscal year that began Nov. 1, 2025, Matador said on Oct. 2. Approximately 138 bitcoin now secure the facility, a separate measure from the coins bought with note proceeds. The facility has a US$100 million ceiling. Another US$89.5 million may be drawn in follow-on closings if regulatory approvals and other conditions are met.
"This effect operates in both directions and can magnify losses as well as gains," Matador said in its Oct. 2 release.
The warning is tied to several moving pieces the release identifies: operating expenses, debt costs and future common share issuance. Its April bitcoin-per-share measure included both direct coins and equivalents, while subsequent share sales changed the denominator used in that calculation. A larger treasury balance alone therefore would not show whether the bitcoin claim per common share improved.
At-Market Sales Add 49 Million Shares
Matador issued 49,054,400 shares through its at-the-market equity program between Feb. 4 and Oct. 1, according to its Oct. 2 update. It reported C$2,343,564.35 gross and C$2,233,171.24 net for that period. The company lists bitcoin purchases, its bitcoin yield strategy and general working capital as uses of the net proceeds, without allocating an amount to each. Under an August facility amendment, 10 per cent of net proceeds from each qualifying sale must buy bitcoin that is pledged as additional collateral.
An Aug. 13 issuer report had counted 33,510,400 shares sold and C$2,270,639.27 of cumulative gross proceeds through July 31. Subtracting those totals from the Oct. 2 figures gives 15,544,000 additional shares against only C$72,925.08 in additional gross proceeds. Those published totals leave a sharp mismatch between the number of additional shares and the incremental proceeds. Matador has not reconciled the figures in the disclosures cited here.
Management estimates in the Oct. 2 release that cash operating expenditures currently average about C$125,000 a month, with a target of C$100,000. It compares that estimate with average monthly net cash used in operating activities of about C$445,000 in the fiscal year ended Oct. 31, 2025. Those are different measures, so their difference is not a verified monthly saving.
Preferred Shares Need An October Vote
The Aug. 28 company release said the TSX Venture Exchange conditionally accepted the proposed preferred class on Aug. 25. Matador is asking shareholders on Oct. 14 to approve an amendment to its articles creating an unlimited number of preferred shares. The proposed shares would be nonvoting and rank ahead of common shares for dividends and distributions on liquidation.
The company says it has no current plans to issue preferred shares. Shareholder approval would still leave final exchange acceptance outstanding, while a subsequent issuance would need board and specific exchange approval. The Oct. 1 preferred-share financing story is an earlier thread on this beat; Matador's present request concerns creation of the class.
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The Oct. 14 meeting is the next dated test of Matador's preferred-share proposal. Its direct bitcoin holding is about 168 as of Oct. 2, and the Oct. 14 vote will decide only whether shareholders approve the new class; further exchange approval is still required.
