Canadian Company Mojo Invests $1.5 Million in Bitcoin, Plans to Allocate More Next Year

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On December 23, 2020, Canadian financial technology company Mogo announced its plans to invest 1.5% of the company’s reserve assets in Bitcoin by year-end. Mogo’s president and CFO said the company’s initial investment of up to $ 1.5 million in bitcoin builds on the company’s product development-related investments in bitcoin in recent years.

Since Microstrategy bought Bitcoin to replace a percentage of the company’s cash reserves, a large number of companies have followed the Bitcoin balance sheet model. At the time of publication, the web portal bitcointreasuries.org contains 28 listed companies, private companies and ETF-like funds. The 28 companies have a whopping 1,150,622 BTC valued at over $ 27 billion at today’s exchange rates, or 5.48% of the supply.

On Wednesday, Canadian publicly traded company Mogo (NASDAQ: MOGO) (TSX: MOGO) announced that it would allocate 1.5% of the company’s total assets to Bitcoin. The established fintech firm will join the 28 companies that have added Bitcoin (BTC) to their corporate portfolios.

“[Mogo] plans an initial corporate investment of up to $ 1.5 million in Bitcoin and will consider additional investments in 2021 as the investment portfolio of $ 17 million is monetized, “the company stated. “The initial purchase would represent approximately 1.5% of Mogo’s total assets at the end of the third quarter of 2020.”

Mogo has already spent energy on the cryptocurrency economy and in 2018 the company launched the Mogocrypto app. The application allows users from Canada to buy and sell Bitcoin (BTC) through their smartphone. More recently, Mogo announced the launch of a Bitcoin rewards program that will reward Bitcoin users for interacting with Mojo’s products.

“Earlier this month, Mogo reported a 135% increase in the dollar value of Bitcoin, traded on the Mogo platform from October 2020 to November 2020, from the previous month,” the company added.

“We firmly believe in Bitcoin as an asset class and believe this investment is in line with our goal of making Bitcoin investments available to all Canadians,” said company president and CFO Greg Feller during the announcement on Wednesday. “Additionally, we believe Bitcoin is an attractive investment for our shareholders with significant long-term potential as its adoption continues to grow worldwide,” he added.

Feller went on to explain:

We plan to allocate a modest portion of our capital to Bitcoin investments initially and will consider additional investments in Bitcoin as we monetize part of our existing $ 17 million portfolio, which we expect to start in 2021.

The latest news from Mogo follows Elon Musk speaking with Michael Saylor, CEO of Microstrategy, about how to put Tesla’s billions in Bitcoin. This is followed by the $ 745 million purchase of Ruffer Investment, made with the help of the San Francisco-based crypto exchange Coinbase and One River Digital. Coinbase has helped many companies with large transactions as the company also brokered the influential purchase of $ 425 million Bitcoin by Microstrategy.

Mojo likely has its own method of buying large sums of Bitcoin (BTC) by having its own trading platform. “As the only established Canadian company publicly traded on the TSX and NASDAQ, with an easy and affordable way to buy and sell Bitcoin through our award-winning app, we are well positioned to capitalize on the rapidly growing demand for Bitcoin, ”concluded Mojo’s president.

What do you think of all of the companies that are starting to keep Bitcoin on their balance sheets? Let us know what you think on this matter in the comments section below.

Tags in this story

Bitcoin Reserves, Bitcoin Rewards, bitcointreasuries.org, Candian Financial Tech, CFO, Coinbase, Companies Buying Bitcoin, Elon Musk, Fintech, Greg Feller, Michael Saylor, Micro Strategy, Mogo App, Mogo Platform, Mojo, Mojocrypto , Nasdaq, buffer investment, TSX

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