Mogo to Make Corporate Investment in Bitcoin
23 December 2020 - 11:43PM
Business Wire
All figures in Canadian $
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
Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of applicable securities legislation, including
statements regarding our intention to invest in bitcoin, our belief
that bitcoin represents an attractive investment and the expected
appreciation of bitcoin. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by management at the time of preparation, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies, and may prove to be
incorrect. Forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause actual
financial results, performance or achievements to be materially
different from the estimated future results, performance or
achievements expressed or implied by those forward-looking
statements and the forward-looking statements are not guarantees of
future performance. Mogo's growth, its ability to expand into new
products and markets and its expectations for its future financial
performance are subject to a number of conditions, many of which
are outside of Mogo's control. For a description of the risks
associated with Mogo's business please refer to the “Risk Factors”
section of Mogo’s current annual information form, which is
available at www.sedar.com and www.sec.gov. Except as required by
law, Mogo disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
events or otherwise.
About Mogo
Mogo — a financial technology company — offers a finance app
that empowers consumers with simple solutions to help them get in
control of their financial health and be more mindful of the impact
they have on society and the planet. Users can sign up for a free
account in only three minutes, begin to learn the 4 habits of
financial health and get convenient access to products that can
help them achieve their financial goals including a digital
spending account with Mogo Visa* Platinum Prepaid Card featuring
automatic carbon offsetting, free monthly credit score monitoring,
ID fraud protection and personal loans. Members can also easily buy
and sell bitcoin 24/7 through the Mogo app, as well as participate
in Mogo’s new bitcoin rewards program. The Mogo platform has been
purpose-built to deliver a best-in-class digital experience, with
best-in-class products, all through one account. With more than one
million members and a marketing partnership with Canada's largest
news media company, Mogo continues to execute on its vision to
gamify financial health and become the go-to financial app for the
next generation of Canadians. To learn more, please visit mogo.ca
or download the mobile app (iOS or Android).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201223005205/en/
Craig Armitage Investor Relations craiga@mogo.ca (416)
347-8954
Mogo (TSX:MOGO)
Historical Stock Chart
From Apr 2024 to May 2024
Mogo (TSX:MOGO)
Historical Stock Chart
From May 2023 to May 2024