Matador Technologies Updates Treasury Structure and Cost Optimization Efforts

Matador Technologies Inc., a Bitcoin Ecosystem Company, has provided a corporate update detailing its capital structure, operations, and governance since the beginning of its 2026 fiscal year on November 1, 2025. The company holds approximately 168 Bitcoin as its primary treasury asset, a significant position in the cryptocurrency market. Matador has issued US$10.5 million principal amount of senior secured convertible notes under its US$100 million secured convertible note facility, a move that has allowed the company to acquire 92 Bitcoin. Since November 2025, the company has put in place a C$80 million base shelf prospectus and a C$30 million at the market equity program, both of which have been effective for 25 months from their respective dates.

The company's capital markets tools have been instrumental in raising capital efficiently and acquiring additional Bitcoin when management considers it beneficial. In the period since the fiscal year began, the company has issued 49,054,400 common shares through the at-the-market equity program, generating aggregate gross proceeds of $2,343,564.35. Net proceeds from these sales amounted to $2,233,171.24, which have been used to purchase Bitcoin and support the company's Bitcoin yield generation strategy, as well as for general working capital purposes.

Matador's leadership has also undergone a change, with Donato Sferra appointed as Chief Executive Officer and Deven Soni appointed as Executive Chairman, both effective July 16, 2026. The company has also proposed a new class of preferred shares for shareholder approval at its annual general and special meeting on October 14, 2026. The proposed amendment to the company's articles would create an unlimited number of preferred shares, which the board of directors considers prudent to have available in the future, should circumstances warrant.

In terms of cost optimization and operating efficiency, Matador has reviewed its operating cost structure and implemented several measures to reduce costs and improve efficiency. The company has restructured its executive and consulting agreements and terminated certain consulting engagements that were no longer considered necessary. The company has also adopted artificial intelligence-based tools internally to automate certain tasks and to perform work previously carried out by external advisors, allowing more of its finance, reporting, and administrative functions to be completed internally on a more efficient basis.

Since the beginning of fiscal 2026, management estimates that the company's cash operating expenditures currently average approximately C$125,000 per month. By comparison, net cash used in operating activities for the fiscal year ended October 31, 2025, as reported in the company's audited annual financial statements, was C$5,337,072, or an average of approximately C$445,000 per month. These measures have allowed the company to reduce its cash operating expenditures to a current estimated average of approximately C$125,000 per month, with a target of approximately C$100,000 per month.

Matador's treasury structure is structured as a leveraged Bitcoin treasury company, with the company's Bitcoin holdings funded through a combination of common equity and secured convertible debt. The company's Bitcoin holdings are primarily held as collateral under its US$100 million secured convertible note facility, with approximately 138 Bitcoin held in this manner. Matador's cost optimization and operating efficiency measures have allowed the company to reduce its cash operating expenditures to a current estimated average of approximately C$125,000 per month, with a target of approximately C$100,000 per month.

Matador's corporate update underscores the company's commitment to its Bitcoin holdings and its ongoing efforts to optimize its cost structure and improve its operations. The company's proposed preferred shares and its proposed amendment to its articles reflect its strategy to maintain a durable long-term business model that is better positioned to maintain its Bitcoin position through periods of price volatility. The company's capital markets tools and cost optimization measures have allowed it to raise capital efficiently and acquire additional Bitcoin, while also reducing its operating costs.