A Canadian fintech firm is investing $1.5 million in Bitcoin and intends to increase its investment in the coming year
A Canadian financial technology company, Mogo, plans to invest 1.5% of its reserve assets in Bitcoin (BTC). The company will invest by the year’s end and intends to increase its exposure to the cryptocurrency by next year.
Greg Feller, President and CFO of Mogo, says the initial investment is worth $1.5 million. This would build on the company’s product development related investments in the cryptocurrency over the past few years.
The publicly listed Canadian company has been in the cryptocurrency space since 2018. Mogo is one of the easiest platforms to buy and sell Bitcoin in Canada. The platform allows users to trade Bitcoin at real-time prices instantly through the Mogo app, 24/7 from their mobile phones.
Feller maintains that Mogo has always been a firm believer in Bitcoin as an asset class, and the recent investment proves that point. “In addition, we believe Bitcoin represents an attractive investment for our shareholders with significant long-term potential as its adoption continues to grow globally”, he added.
The Mogo head further revealed that the company would allocate more of its corporate capital towards Bitcoin as they monetise some of their existing $17 million portfolio. Feller believes Mogo’s position as the only well-established Canadian company publicly trading on the TSX and NASDAQ gives them the advantage to capitalise on Bitcoin’s fast-growing demand.
The company lamented that despite BTC recording a 135% month-over-month increase between October and November, most Canadians don’t own or have exposure to the leading cryptocurrency. Mogo intends to change the status quo and expose the majority of Canadians to Bitcoin.
Mogo joins avalanche of institutional investors in Bitcoin
Bitcoin’s price is up by more than 200% year-to-date. 2020’s bull run is believed to be driven by rising mainstream acceptance and a growing interest from institutional investors and leading fintech companies.
Mogo is joining the likes of MicroStrategy, which recently purchased an additional $650 million worth of Bitcoin. Skybridge Capital is also committing $25 million to the leading cryptocurrency and plans to increase its position next year.
Guggenheim and Alan Howard are other institutional investors gearing up to make massive investments in Bitcoin. Institutional investors are beginning to see Bitcoin as a valuable asset class and the currency will likely see more such investments in future.