Matador says 82% of its bitcoin treasury backs secured debt

Matador Technologies said approximately 138 of its 168 bitcoin were pledged as collateral under a secured convertible-note facility as of October 2, putting about 82% of its reported treasury behind debt obligations.

The percentage is Coinburn’s calculation using the rounded quantities in Matador’s October 2 corporate update. It measures pledged coins against the company-reported bitcoin balance at that disclosure date; it is not an independently verified custody measurement and does not value either side of the balance sheet at current market prices.

The concentration matters because Matador markets its TSX Venture-listed shares as a route to bitcoin exposure, but common shareholders do not receive an unencumbered claim on every coin reported by the company. Secured creditors hold contractual rights over the pledged collateral, while share issuance changes each investor’s proportional interest in the treasury.

Debt financed 92 bitcoin purchases

Matador said it has issued US$10.5 million in senior secured convertible notes under a facility with a US$100 million ceiling. The company reported using those issued-note proceeds to acquire 92 BTC during the fiscal year that began November 1, 2025.

The remaining US$89.5 million of facility capacity has not been drawn. Matador says subsequent closings would depend on regulatory approvals and other conditions, so the headline facility size should not be read as current debt or committed funding.

Interim financial statements for the nine months ended July 31 provide an earlier, more detailed snapshot. They recorded 168.16 BTC with a carrying value of C$14.82 million. Of that balance, 138.22 BTC valued at C$12.18 million was pledged under the note facility, another 7 BTC valued at C$616,850 was posted as margin for derivatives positions, and 22.95 BTC valued at C$2.02 million was described as unencumbered.

Those Canadian-dollar values were measured on July 31 and are not October 2 valuations. Bitcoin’s price changes continuously, and the October update did not reproduce the filing’s breakdown of margin-posted and unencumbered coins. It therefore does not establish whether the 7-BTC margin position remained unchanged.

Share sales add a second layer of leverage

Matador also reported issuing 49,054,400 common shares through its at-the-market program from February 4 through October 1. It placed the weighted average sale price at C$0.0478 per share, with C$2.34 million in gross proceeds and C$2.23 million after commissions and expenses.

The company lists bitcoin purchases, support for its bitcoin-yield strategy and general working capital among the uses of those proceeds, without assigning an amount to each category. Under an August amendment to the debt facility, 10% of net proceeds from each qualifying share sale must be used to acquire bitcoin that is then added to the collateral pool.

That structure can increase the absolute bitcoin balance while simultaneously expanding the common-share denominator and the amount of bitcoin pledged to creditors. A larger treasury therefore does not, by itself, demonstrate that unencumbered bitcoin per common share improved.

Preferred shares could further reshape claims

Shareholders are scheduled to vote October 14 on creating an unlimited class of preferred shares. Matador says it has no current plan to issue them. Approval would only authorize the class; a subsequent issuance would still require board action and specific TSX Venture Exchange approval.

Preferred securities could rank ahead of common equity under terms established for a future issuance, adding another potential claim between secured creditors and common shareholders. For now, that remains a proposal rather than outstanding capital.

The verified October 2 development is narrower: Matador continues to report approximately 168 BTC, most of which secures its borrowing. The disclosure does not independently prove custody, provide current collateral valuations, allocate recent financing proceeds in detail or show that leverage has improved returns for common shareholders.