Matador Technologies Inc. Announces Updated Terms of USD$100 Million Convertible Note Facility to Expand Bitcoin Holdings

Core Insights - Matador Technologies Inc. has entered into an amended secured convertible note facility with ATW Partners, allowing the issuance of convertible notes totaling up to USD$100 million [2][3] - The facility is exclusively for purchasing Bitcoin to enhance Matador's balance sheet, with an initial tranche of USD$10.5 million and additional drawdowns subject to regulatory approvals [3][4] - The company aims to accumulate up to 1,000 BTC by 2026 and 6,000 BTC by 2027, targeting a position among the top 20 global corporate holders of Bitcoin [6][19] Financing Structure - The convertible notes will bear an interest rate of 8% per annum, reducing to 5% after the company's uplisting to NASDAQ or NYSE, with a potential increase to 18% in case of default [4][5] - A commitment fee of 5% of the purchase price of all notes sold will be paid to the investor [3][5] - The notes are secured by collateral consisting of Bitcoin, with a requirement of 150% of the principal amount for the initial closing and 100% for subsequent closings [14] Strategic Objectives - The financing supports Matador's long-term Bitcoin accumulation strategy, aiming to increase Bitcoin per share and align with institutional interest [4][5] - The company is focused on maintaining capital efficiency while expanding its Bitcoin position [4][19] - Matador's strategy includes investing in innovative growth-stage financing and enhancing the Bitcoin network through product development [18][20]