What to know:
- Matador signed a binding letter of intent to invest in HODL Systems, a publicly traded Indian tech firm.
- The agreement involves licensing Matador’s digital gold and Ordinals products for the Indian market.
- This initiative aims to cater to India’s mobile-driven, gold-centric investing audience with blockchain solutions.
Matador Technologies, based in Toronto, is poised to invest up to $3.2 million in HODL Systems, a publicly listed Indian entity that integrates cryptocurrencies into its treasury strategy. This move potentially grants Matador up to 24.95% ownership.
The arrangement also includes plans for HODL to license and distribute Matador’s blockchain-based offerings, such as digital gold and Ordinals, in India, a nation renowned for its gold investment and youthful, tech-savvy demographic. The World Gold Council indicates that Indian households possess over 25,000 tonnes of gold. Furthermore, over 65% of its population is under 35, suggesting a vast user base for digital investment platforms.
“This strategic investment in HODL underscores our commitment to expanding our footprint in high-growth markets,” said Matador CEO Deven Soni. Mark Moss, the Chief Visionary Officer, added that he believes: “the next wave of global financial infrastructure will be built on digital assets.”
Contingent upon regulatory approvals, the first phase of the warrant investment, equating to 25% of the total, is slated to conclude by July 10, 2025. The remaining funds will be allocated within 18 months. Holders can convert the warrants into equity shares at a 1:1 ratio during this period.
Ultimately, this deal, pending approval from the TSX Venture Exchange, and consent from HODL shareholders, could not only mark Matador’s entry into the Indian market but could also enable the firm to capitalize on one of the largest untapped markets for crypto-backed financial solutions.
