Matador Technologies revises $100 million convertible bond terms, focusing on expanding Bitcoin holdings

Matador Technologies Inc. (TSXV: MATA) announced that it has revised the terms of the $100 million convertible note financing agreement with ATW Partners and has signed the first tranche of $10.5 million.

In accordance with the Ontario Securities Commission's review requirements, the company issued a corrective 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 funds will be exclusively used to purchase bitcoins to drive growth in bitcoin holdings per share. The notes carry an annual interest rate of 8%, which will decrease to 5% after the company lists on NASDAQ or NYSE from TSXV. The notes are secured by bitcoins, with a collateral amount of 150% of the principal of the notes (for the initial tranche) or 100% (for subsequent tranches).

Matador CEO Deven Soni stated, "This financing marks an important step in our long-term bitcoin accumulation plan, providing the company with the necessary funds to expand its bitcoin holdings while limiting short-term dilution and remaining consistent with our overall capital strategy." The company plans to acquire up to 1,000 bitcoins by 2026.