Tech Company Doubles Digital Gold Asset Holdings

Source: Streetwise Reports 01/27/2025

Matador Technologies Inc. (MATA:TSX.V) announced it has increased its gold balance sheet in support of developing its digital gold product set to launch early this year. Read how one expert believes the technology will capture the imagination of younger investors.

Matador Technologies Inc. (MATA:TSX.V) announced it has increased its gold balance sheet in support of developing its digital gold product set to launch early this year.

The company said has bought 1 kilogram of gold for about US$89,208, including fees and expenses, to bring its gold balance to 2 kilograms.

The company’s technology pairs its digital gold product with digital art on the Bitcoin blockchain. The gold is sourced through the Royal Canadian Mint through a partnership with Kitco metals Inc. All physical gold holdings will remain stored at the Mint.

“Gold is a cornerstone of Matador’s first product, not just as a financial asset but as the foundation for our digital gold products,” said Matador Chief Executive Officer Deven Soni. “This move reflects our commitment to combining the timeless appeal of gold with the modern engagement opportunities presented by blockchain technology.”

Matador has been working on “making gold great again” since late 2021 and is eager to bring this concept to the market, Soni said.

The launch of the digital product, which will blend gold ownership with digital art, is part of a larger vision to merge traditional finance with progressive digital tools, the company has said.

“Bitcoin and other assets have captured the imagination of a younger generation that might have otherwise been interested in gold,” said entrepreneur, business author, and seasoned capital markets professional Alex Tapscott, who co-wrote the bestselling book Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World, and the more recent Wall Street Journal Bestseller Web3. Tapscott owns 0.04% of Matador’s stock, according to Refinitiv.

“To me, these are both things that should be cornerstones of anyone’s portfolio,” Tapscott said of Bitcoin and gold. “So how do we get access to it? Well, one of the problems with gold investing is that the way in which people invest in gold hasn’t evolved all that much since the start of the industrial era . . . For most of the world’s population, it’s all still physical gold bullion.”

A ‘Container for Value’

Gold was the world’s seventh-most-traded product for a total of US$478 billion in 2022, or about 2% of total world trade, according to the Observatory of Economic Complexity (OEC). While its price per ounce has shown some recent volatility, it reached an all-time high of US$2,788.54 in October, and many experts believe it is still in a bull market.

Much like gold’s traditional use as a vessel to store value and hedge against inflation, Bitcoin is attracting traders looking to profit from its price changes. The price of a Bitcoin (which hit more than US$100,000 this year) has more than doubled from March 2024.

Bitcoin was the first decentralized cryptocurrency, a digitized alternative form of payment created using encryption algorithms. Nodes in the peer-to-peer network verify transactions on a distributed ledger called a blockchain. That blockchain can contain just about anything. A newer invention called crypto tokens is a digital representation of an asset or interest in something built on a blockchain, according to Investopedia.

Tapscott described tokens as just “a container for value,” like a shipping container. It can contain whatever is needed but its use makes the shipping and financial industries “that much more efficient.”

Soni said the company places an automated order for gold in real-time as Matador gold is purchased, always ensuring they have an excess in the Royal Canadian Mint. According to the company’s investor presentation, it is partnering with blockchain artists to create exclusive collections of 1,000 digital artifacts etched on physical gold, “blending art and blockchain technology.”

The Catalyst: Gold Continues Its Rise

According to a report by Anjana Anil for Reuters, a weakening dollar on U.S. President Donald Trump’s push for lower rates and tariff uncertainty drove gold towards its fourth straight weekly rise, climbing over 1% on Friday, closing in on its all-time high from October.

“One factor certainly seems to be the drop in the U.S. dollar… some of the biggest factors that are driving it are associated with (President Trump) talking tariffs,” Bart Melek, head of commodity strategies at TD Securities, told Anil. “(Trump) is at risk of elevating prices and I think the gold market perceives perhaps a higher inflation and possibly a central bank that’s more accommodative.”

Gold continued to shine as a hedge against inflation and instability, Anil wrote, while it remains particularly appealing in a low-interest-rate environment.

The gold market is experiencing its best start since 2023 and is on track for its strongest monthly performance since September, which could signal another big year for the metal, Neils Christensen reported for Kitco on Tuesday.

Eric Strand, founder of the boutique precious metals firm AuAg Funds, said he expects gold prices to surpass US$3,000 an ounce this year, Christensen wrote.

“We predict that gold will break the US$3,000 level during the year and potentially finish even higher, with a realistic target of US$3,300,” Strand said.-

According to Grand View Research, the global Bitcoin market size was valued at US$17.05 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 26.2% from 2022 to 2030 as the platform can deliver cheaper and faster payments, less volatility, and also enables secure transactions. [OWNERSHIP_CHART-10854]

“As a result, Bitcoin can also be used as a store of value, other than as a medium of exchange for products and services across the globe,” researchers said. “Moreover, with the emergence of Bitcoin, financial transactions no longer require central authorization and are settled immediately.”

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 91.8 million shares outstanding and has a market cap of CA$41.33 million at the time of writing. It trades in a 52-week range of CA$0.11 and CA$0.90.

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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.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: MATA:TSX.V, )

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