Following an initial investment of up to $1.1 million, the NASDAQ-listed company will consider additional investments in Bitcoin in 2021 as it looks to monetize its $13 million investment portfolio.
According to the company’s press release published on 23 December, the initial Bitcoin purchase would represent approximately 1.5% of Mogo’s total assets at the end of the third quarter of 2020.
Greg Feller, the president and CFO of Mogo, said that Bitcoin represents an attractive investment for their shareholders with significant long-term potential.
“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,” he said in the release.
Feller added that Mogo was well-positioned to capitalize on the fast-growing demand for the cryptocurrency. Earlier this month, Mogo reported a 135% month-over-month increase in the dollar value of Bitcoin traded on the platform from October to November this year.
The Bitcoin investment will build on Mogo’s other investments in product developments over the last few years. Since 2018, the company enables members to buy and sell Bitcoin instantly through the Mogo app. In addition to that, Mogo recently launched its Bitcoin rewards program, providing members with the opportunity to earn BTC through engagement with its products.