Matador to spin out gold treasury system GODL

Executive Summary

• Matador Technologies Inc. announces its intention to spin out its wholly owned subsidiary, GODL Corp., into an independent public company focused on a yield-generating gold treasury strategy and gold tokenization.
• The transaction is conditional upon TSX Venture Exchange approval and other regulatory/shareholder requirements. GODL currently has no assets but intends to raise equity capital and pursue a public listing on a Canadian stock exchange concurrently with the spinout.
• The spinout aims to separate Matador’s bitcoin ecosystem initiatives from GODL’s gold treasury mandate to reduce conglomerate drag, allowing independent valuation of both entities.

Key Details

• Target Entity: GODL Corp., a pure-play gold treasury company with a mandate to maximize gold ounces per share.
• Asset Strategy: 100% of capital (net of operating costs) to be deployed into physical gold and tokenized gold.
• Storage & Custody: Physical gold held in LBMA vaults; tokenized gold held in institutional cryptocurrency custody with segregated, audited capacity.
• Capital Raising Tools: GODL plans to use at-the-market offerings and convertible debt to acquire more gold when market capitalization to net asset value exceeds one time, subject to regulatory approvals.
• Yield Strategy: Targeting an annual yield on assets under management via traditional and tokenized gold yield strategies. Net income generated is intended to be used to acquire more gold, though realization is not guaranteed.
• Operational Structure: GODL will establish its own management team and advisory board post-spinout.
• Technology Licensing: GODL plans to enter into a licensing agreement with Matador for its tokenization technology.
• Market Context: Cited record gold prices, inflation, government debts, central-bank demand, and geopolitics as tailwinds. Gold-backed tokens represent ~1% of the real-world-asset (RWA) tokenization market, with total value over $5 billion USD.
• Risk Factors: Use of leverage and active capital strategies introduce downside risks, market volatility, and liquidity constraints. No guarantee of yield or premium to NAV.

Notable Quotes

• Deven Soni, CEO of Matador Technologies: "Building on Matador's growing presence in the bitcoin ecosystem, our blockchain technology expertise and success of our Bitcoin treasury strategy, we're excited to launch GODL as a gold investment vehicle focused on generating yield from gold holdings and tokenization opportunities. While subject to market volatility and downside risks, GODL provides investors with a differentiated and accretive way to gain exposure to gold at a time when prices are at all-time highs. By combining blockchain innovation and tokenization technology with physical gold backing, GODL offers a modern, efficient and globally compliant alternative to traditional gold investments."
• Donato Sferra, Incoming CEO of GODL: "Gold has served as a reliable store of value for millennial and is increasingly relevant in today's environment of rising sovereign debt, weakening fiat confidence and persistent inflation. GODL is an innovative gold investment platform, focusing on increasing gold ounces per share through active capital strategies, while integrating tokenization technology to bring greater transparency, lower friction and broader accessibility to gold ownership."