In a statement released on March 7, the Canadian fintech entity Mogo disclosed its strategy to diversify its portfolio by investing in bitcoin and bitcoin exchange-traded funds (ETFs), earmarking an initial outlay of as much as $5 million.
Canadian Fintech Mogo Dives Deeper Into Bitcoin
The publicly traded Canadian enterprise Mogo (Nasdaq: MOGO) (TSX: MOGO) shared on Thursday its decision to invest up to $5 million in bitcoin (BTC) and bitcoin ETFs, following the approval from its board of directors for an adjustment in its treasury management policy. Mogo also revealed that as of the third quarter, ending on Sept. 30, 2023, its holdings in cash and total investments amounted to $43.7 million. Mogo additionally holds a stake in Wonderfi Technologies Inc. (TSX: WNDR), one of Canada’s regulated crypto investing platforms.
Since Microstrategy incorporated BTC into its financial reserves in 2020, a multitude of companies have followed suit by integrating bitcoin into their corporate coffers. The move on Thursday is not Mogo’s initial venture into cryptocurrency, as the firm announced it had dedicated 1.5% of its reserves to BTC by the close of December 2020. In the subsequent year, 2021, the Canadian enterprise introduced BTC rewards for customers participating in its mortgage refinancing scheme.
By May 2021, Mogo unveiled its decision to include ethereum (ETH) in its investment mix as well. “Mogo was an early entrant to crypto investing in North America having first invested in bitcoin in 2020, and we continue to believe in the long-term investment opportunity for bitcoin,” Greg Feller, the president of Mogo Inc., said on Thursday.
The Mogo executive added:
The recent regulatory approval of spot bitcoin ETFs, along with the commitment of several of the world’s largest asset managers such as Fidelity and Blackrock, support our view that bitcoin is a legitimate global asset class with attractive qualities that make it a unique store of value.
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Source: Bitcoin
