Public companies raise $105 million to buy Bitcoin, with a maximum target of 1,000 BTC

【Chain Wen】Canadian publicly listed company Matador Technologies announced a major financing plan. In collaboration with ATW Partners, a convertible bond financing of up to $100 million has been revised, with the first tranche of $10.5 million already signed. The funds are exclusively allocated for purchasing Bitcoin.

The financing terms are quite complex. The initial coupon rate is set at 8%, but once the company uplists to the NASDAQ or NYSE, the rate will decrease to 5%; if there is a default, it will rise to 18%. In addition to the basic interest, the initial issuance also includes a special interest of up to 25% or 50% of the principal, with total costs not exceeding an annualized 24% during the TSXV listing period.

The conversion price will dynamically adjust based on the company’s listing status and volume-weighted average price. The initial conversion price is set at $0.529178304. As a risk buffer, the notes are collateralized with BTC, with a collateral ratio of 150% for the first financing, and 100% for subsequent financings.

From an investment perspective, Matador plans to purchase up to 1,000 Bitcoin by the end of 2026. This financing changes the company’s previous stance on long-term BTC holdings, removing commitments such as “holding 6,000 BTC until 2027” and “long-term goal of holding about 1% of the total Bitcoin supply.” This adjustment reflects the company’s reassessment of the financing structure and market conditions.