Publicly-Traded Canadian FinTech Company Invests 1.5% of its Assets into Bitcoin
The $1.5 Million worth of corporate Bitcoin investments is just the beginning, MOGO plans to buy more BTC next year.
Canadian Fintech company MOGO is investing $1.5 million in Bitcoin. This investment represents the company's 1.5% assets, as of the end of the third quarter of 2020. But the company is not done with its Bitcoin investment, it plans to do more of it with more of it in 2021. Greg Feller, President, and CFO of Mogo said,
“We plan to initially allocate a modest portion of our capital toward bitcoin investments and will consider additional investments in bitcoin as we monetize some of our existing $17 million portfolios which we expect to begin doing in 2021.”
The company which is publicly traded on the NASDAQ and TSX believe it is “well-positioned to capitalize on the fast-growing demand for bitcoin.”
This isn't the first time that Mogo has ventured into the cryptocurrency market. Back in 2018, it launched MogoCrypto to enable the buying and selling of Bitcoin in Canada. Recently, it also announced its bitcoin rewards program, an opportunity to earn BTC by engaging with Mogo’s products.
Earlier this month, the company reported a 135% month-over-month increase in the value of Bitcoin traded on its platform from Oct. to Nov. 2020. Feller said,
“We are strong believers in bitcoin as an asset class and believe this investment is consistent with our goal to make bitcoin investing available to all Canadians. In addition, we believe bitcoin represents an attractive investment for our shareholders with significant long-term potential as its adoption continues to grow globally.”
Mogo is just another addition to the long line of companies that have been making corporate investments in the world's largest cryptocurrency.
MicroStrategy, Square, Ruffer Investment, and many others have jumped on the Bitcoin bandwagon along with the big names like Guggenheim, Paul Tudor Jones, Stanley Druckenmiller, Ben Miller becoming Bitcoiners.
“Most investment banks and private banks will announce crypto offerings,” and “several large public companies will issue BTC-related capital structure instruments,” predicts Su Zhu, CEO of Three Arrows Capital for 2021. He also sees several central banks announcing “substantial stakes in BTC.”