‌Canadian‌ ‌Fintech Mogo Purchases $1.5 Million Worth of Bitcoin

Bitcoin’s performance this year has so far beaten every investment asset out there. So, it is no surprise that institutions have been more aware of the asset this year. With 2020 winding to a close, another top company has made a Bitcoin play as it hopes to protect its bottom line.

Not Too Late to Join

Yesterday, Mogo, a Vancouver-based FinTech company, announced that it would invest $1.5 million in Bitcoin. In its release, the company explained that this round is an initial investment, and that it builds on its related investments in Bitcoin over the past few years.

The Vancouver-based firm offers several FinTech services to clients. These include mortgage services, identity fraud protection, personal loans, and more.

Mogo explained that the initial purchase would represent about 1.5 percent of its total assets, based on its financial status at the end of the third quarter.

Greg Feller, its chief executive, explained that the firm would consider making additional investments in the asset as it monetizes some of its existing portfolio worth $17 million. He added:

“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.”

2020 Was the Year of Institutions

The firm’s conservative play mirrors that of Square, a top American payment processor. In October, the Silicon Valley firm, headed by Twitter CEO and Bitcoin enthusiast Jack Dorsey, announced that it would move 1 percent of its total assets – about $50 million – into Bitcoin.

In its announcement, Square reiterated its belief that cryptocurrencies are a tool for economic empowerment that provides financial inclusion. With the firm’s pedigree in the crypto space, the move wasn’t much of a surprise. However, it didn’t say whether it would make any additional purchases in the future.

Mogo is the latest publicly-traded company to make a Bitcoin play. Of course, its investment pales significantly compared to some of the other firms that have entered the market this year. MicroStrategy takes the gold when it comes to institutional investors, with the firm having purchased over $1 billion in Bitcoin this year following a decision to move to the Bitcoin standard.

The company’s chief executive, Michael Saylor, has also become a Bitcoin maximalist. On Sunday, he went after Elon Musk, the Tesla CEO and the world’s second-richest man, asking him to convert his company’s balance sheet into Bitcoin. Saylor explained that the move would do Tesla shareholders a “$100 billion favor,” causing other firms to follow Musk’s lead and propelling Bitcoin to a $1 trillion asset.