Technology Company Discovers Massive Digital Gold Opportunity in India

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Matador Technologies Inc. (MATA:TSX.V; MATAF:OTCQB) announced it has entered into a binding letter of intent (LOI) to invest in a public Indian company tentatively named HODL Systems that would implement a treasury strategy including investing in digital assets.

Under the terms of the LOI, the company commits to invest up to USD$3.2 million in a share warrant structure that would provide Matador up to 24.95% ownership stake in HODL, assuming full exercise of the warrants.

"At Matador, we believe the next wave of global financial infrastructure will be built on digital assets," said Matador Chief Visionary Officer Mark Moss. "By aligning with HODL, we're not just expanding geographically — we're expanding the reach of the digital assets' ecosystem into a key innovation hub."

Matador "wants to be one of the first public companies focused on tokenizing real-world assets by leveraging the Bitcoin blockchain, starting with gold," wrote Don Tapscott, executive chairman of the Blockchain Research Institute and one of the world's leading authorities on technology's impact on business and society.

"The gold industry has missed out on the digitally native and newly affluent class of investors who love Bitcoin (and would perhaps love gold if given the chance)," wrote the author, who has penned 16 books, including Blockchain Revolution: How the Technology Behind Bitcoin and Other Cryptocurrencies is Changing the World, with his son, Alex Tapscott. "So, gold needs to play a little catch-up."

Matador said it also expects to enter into a licensing agreement with HODL to distribute its proprietary digital gold product and other technologies in the Indian market.

Both the LOI and the licensing agreement remain subject to the approval of the TSX Venture Exchange, and the investment is subject to Exchange acceptance of the Change of Business.

India Is a 'Large and Growing Market' for Tech

In a release, Matador said one advantage of the move was an expansion into the Indian market, which "is a large and growing market for technology and digital assets."

According to a report by Reuters in February, which quotes industry body Nasscom, the country's tech sector revenue will grow 5.1% to US$282.6 billion in fiscal 2025, compared with the previous fiscal year's 4%, with revenue crossing US$300 billion in fiscal 2026.

"India's technology sector is expected to grow at a higher pace this fiscal year, driven by engineering research and development and the rising number of global capacity centers (GCC), or low-cost offshore hubs," the article noted.

Matador said HODL's business model aligns with its broader investment thesis around the adoption of digital assets and the integration of decentralized financial assets.

The company said it would go towards "capturing a digitally native gold market," as India is the largest private gold-owning country, with the World Gold Council estimates more than 25,000 tonnes of gold is held by households.

In addition, Matador pointed out that about two-thirds of the country's population is under 35.

Matador and HODL plan to offer blockchain-based investment products tailored to younger, tech-savvy investors in India, the release said.

"This strategic investment in HODL underscores our commitment to expanding our footprint in high-growth markets and advancing the adoption of digital asset-centric financial strategies," Chief Executive Officer Deven Soni said. "By partnering with HODL, we are poised to deliver innovative digital asset solutions to the Indian market, aligning with our mission to drive global financial inclusion through decentralized technologies."

According to Matador, 25% of the investment is due on or before July 10, with the rest due on or before 18 months. The shareholders of HODL must approve the proposed subscription.

Important Strategic Investment

On Friday, Matador announced the closing of a CA$1.5 million strategic investment by digital asset management firm Arrington Capital.

Arrington Capital was co-founded by Michael Arrington, founder and former co-editor of the TechCrunch blog covering technology and technology startups and a blockchain and digital asset investor. Magazines such as Wired and Forbes have named Arrington one of the most powerful people on the internet.

"This is more than just a capital raise — it's a signal that the world’s top digital asset investors see the same future we do," Moss said.

Pairing Digital Gold With Digital Art on the Bitcoin Blockchain

The company is preparing to launch its digital gold product soon as gold continues in a bull market. Matador's digital asset platform will begin with a gold-based product on the Bitcoin network in the next couple of months and will feature "Grammies," 1-gram units of physical gold linked to digital inscriptions using Bitcoin ordinals.

Matador said it expects the Grammies product to be the first of multiple offerings centered on precious metals and digital inscription, with silver and other metals under consideration for future phases.

The company also noted that as a part of asset diversification approach, it continues to accumulate both Bitcoin and physical gold.

Matador's technology pairs its digital gold product with digital art on the Bitcoin blockchain. The gold is sourced through the Royal Canadian Mint through a partnership with Kitco and physical gold holdings are stored at the Mint.

The Catalysts: Growing Markets

According to Statista, the projected revenue for the cryptocurrencies market worldwide will reach an estimated US$45.3 billion this year.

The average revenue per user is anticipated to US$52.70 in 2025, and the number of users in the total market is expected to top 861 million this year, as well, Statista noted.

According to a report by Neils Christensen for Kitco on Thursday, "The U.S. economy may not be in as bad a shape as initially expected, but the nation's Gross Domestic Product (GDP) remains in contraction territory, continuing to support gold's current safe-haven appeal."

The yellow metal was holding critical support above US$3,300 an ounce.

Experts have said the bull market in gold is not expected to shrink away. Garth Friesen wrote for Forbes on March 15 that DoubleLine Chief Executive Officer Jeffrey Gundlach said, "I think gold will make it to US$4,000. I'm not sure that'll happen this year, but I feel like that's the measured move anticipated by the long consolidation at around US$1,800 on gold."

And according to an April 10 post on Goldfix, Goldman Sachs has revised raised the upper boundary of its forecast range for the end of the year to US$3,520 an ounce and even introduced a "tall-risk scenario" as high as US$4,500 an ounce.

Ownership and Share Structure

According to the company, 65% is owned by management and insiders, including Founder and Director Donato Sferra, Vice President of Finance Geoff St. Clair, Director Richard Murphy, Soni, a strategic investor (through UTXO Management, LLC and 210K Capital, LP), Director Tyler Evans (through UTXO Management, LLC and 210K Capital, LP), and Founder Trevor Koverko, among others. 

The rest, about 35%, is retail, and includes Hive Digital with 3%, Kitco Metals with 1%, and Gold Fields Ltd. with 4%, the company said.

It has about 92.89 million shares outstanding and has a market cap of CA$87.16 million at the time of writing. It trades in a 52-week range of CA$0.11 and CA$1.00.