Canadian Fintech Firm Mogo Adds Another 146 Ethereum to Its Crypto Portfolio
Vancouver-based fintech company Mogo has purchased Ether as it continues to allocate its cash reserves into cryptocurrencies.
Mogo Deepens its Belief in Crypto
The company which had previously purchased Bitcoin announced that it had purchased 146 ETH at an average price of $2,780. This brings the purchased cryptocurrency to $405,880 in value at the time of the investment.
Mogo's earlier investment in Bitcoin totals $1,054,618 at the current exchange rate, bought at an average price of $33,083.
Mogo's move shows its intention to focus more on crypto assets, especially now that it has liquidated its equity investments in Vena Solutions.
The fintech company sold its Vena solutions holdings for $4.7 million, where it locked in a 116% profit from the book value on December 31, 2020. The company had divested its equity stake in Vena during its $300 million Series C funding.
Speaking on the latest Ether purchase, CEO and founder of Mogo Greg Feller said that the current investment in Ethereum compliments the earlier acquisition of Bitcoin.
“This initial investment in Ether complements our earlier investments in Bitcoin and reflects our belief in the long-term potential of blockchain technology and its position as a core component of a next-generation financial technology platform.”
Feller has previously spoken about how much the company believes in cryptocurrency. Mogo's product development-related investments in crypto date back to 2018, when the company launched MogoCrypto.
MogoCrypto is a platform that enables its members to buy and sell bitcoin at real-time prices instantly through the Mogo app using their mobile device.
In March 2021, the company announced its Bitcoin rewards program that provides members with the opportunity to earn Bitcoin through engagement with Mogo's products while enabling them to accumulate Bitcoin over time.
Apart from Mogo's new-found crypto love, the company also recently closed its strategic investment in Coinsquare Ltd. The firm acquired a 19.99% stake in the popular Canadian exchange with an option to increase its stake to 43%.
Institutional Investors Choosing Bitcoin Over Ethereum
Mogo happens to be one of the few companies that have chosen to invest in the second-largest cryptocurrency. For so long, many of the institutions buying cryptocurrencies focused solely on Bitcoin. This was somewhat attributed to the popularity of the premier digital asset. The last couple of weeks has seen many companies make inroads into Ethereum.
According to Coinbase's annual review for 2020, more institutional clients are snapping up positions in Ether as they now see the crypto as a potential store of value and its growing status as an asset that powers transactions on the Ethereum network.