Mogo to Make Corporate Investment in Bitcoin Mogo to Make Corporate Investment in Bitcoin
VANCOUVER, British Columbia -- (Business Wire) --
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a financial technology company focused on empowering consumers with innovative digital financial solutions through its mobile app, today announced that it plans to make an initial corporate investment of up to $1.5 million in bitcoin and will consider additional investments in 2021 as it monetizes its $17 million investment portfolio. The initial purchase would represent approximately 1.5% of Mogo’s total assets as of the end of the third quarter of 2020.
This initial financial investment builds on Mogo’s significant product development related investments in bitcoin over the last several years. MogoCrypto1, launched in 2018, is the easiest way to buy and sell bitcoin in Canada. It enables members to buy and sell bitcoin at real-time prices instantly through the Mogo app, 24/7 from their mobile device, bringing a new level of convenience and accessibility to bitcoin ownership for all Canadians. In addition, the Company recently announced its bitcoin rewards program, a first of its kind in Canada, that provides members with the opportunity to earn bitcoin through engagement with Mogo’s products and enables them to accumulate bitcoin over time.
“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,” said Greg Feller, President and CFO of Mogo. “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 portfolio which we expect to begin doing in 2021.”
Bitcoin has increased more than 200% in 2020, driven by rising mainstream acceptance as well as growing endorsement from institutional investors and leading global fintech companies. Despite this surge, the majority of Canadians do not own or have exposure to bitcoin. Earlier this month, Mogo reported a 135% month-over-month increase in the dollar value of bitcoin traded on the Mogo platform from October 2020 to November 2020.
Mr. Feller added: “As the only well-established Canadian company publicly traded on the TSX and NASDAQ, offering a simple and low-cost way to buy and sell bitcoin through our award-winning app, we are well positioned to capitalize on the fast-growing demand for bitcoin.”
1To be eligible for MogoCrypto, members must first pass Mogo’s identity and security verification process and agree to the MogoCrypto Terms and Conditions. For more information, see MogoCrypto Terms and Conditions: https://www.mogo.ca/pdfs/MogoCryptoTermsAndConditions.pdf