The Canada-based financial technology company Mogo plans to make an initial corporate investment of over $1 million in bitcoin and increase the amount next year. The crypto-friendly fintech firm has joined the recent trend of sizeable corporations that allocate funds in BTC.
The Vancouver-based fintech company announced its BTC-related plans earlier today. The statement reads that the firm intends to allocate 1.5% of its total assets as of the end of 2020 in the primary cryptocurrency. This would be a $1.2 million initial investment and potential additional purchases throughout 2021.
Thus, Mogo will double-down on its cryptocurrency-related endeavors. MogoCrypto, the company’s digital asset branch, launched in 2018. The firm describes it as the “easiest way to buy and sell bitcoin in Canada” as it enables customers to trade BTC at “real-time prices instantly through the Mogo App.”
The company recently announced a bitcoin rewards program that provides its members to earn BTC through engagement with Mogo’s products. Consequently, users have the chance to increase their bitcoin accumulation without necessarily buying more of the asset.
“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.” – commented President and CFO of Mogo, Greg Feller.
It’s worth noting that Mogo’s shares have surged by about 12% following the announcement to $3.8 as of writing these lines.
With its planned investment in BTC, Mogo will join other sizeable companies and institutions that began accumulating considerable portions of the asset in the second part of this year.
NASDAQ-listed business intelligence giant MicroStrategy was among the first with several purchases. Ultimately, Michael Saylor’s company has purchased more than $1 billion worth of the primary cryptocurrency.
Jack Dorsey’s Square followed with a $50 million buy. Institutions that purchased BTC include Wall Street behemoth Guggenheim, hedge funds One River Asset Management and Ruffer Investment, as well as insurance company MassMutual.