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Digital financial firm Mogo Inc. (TSX:MOGO) Wednesday announced that it intends to buy up to C$ 1.5 million bitcoin in an initial corporate investment. The fintech firm is expected to make further investments in 2021, as it monetizes its existing C$ 17-million investment portfolio. The initial buying would represent nearly 1.5 per cent of its total assets, as reported at the end of the third quarter of 2020.
The announcement comes on the back of the ongoing cryptocurrency rally.
Bitcoin has zoomed over 200 per cent this year, guided by growing mainstream recognition and increasing backing from institutional investors and leading global digital payments platforms. Mogo is planning to capitalize on its existing users and Canadians who do not have exposure to the virtual currencies.
The fintech stock surged 135 per cent month-over-month (MoM) in November, in the dollar value of bitcoin exchanged on the Mogo app.
Mogo already offers a crypto trading platform, MogoCrypto, which was introduced in 2018. MogoCrypto provides services to buy and sell bitcoin across Canada. The company recently launched its bitcoin rewards package, which offers its users the chance to earn bitcoin by engaging in Mogo products.
Let us glance at the fintech stock’s recent performance:
@Kalkine Image 2020
Mogo Inc. (TSX:MOGO)
Current Stock Price: C$ 4.33
The digital finance app stock has soared over 55 per cent in the last one month, led by the latest crypto bull run. The company scrips have rocketed by over 113 per cent in the last three months.
The fintech stock has a present price-to-cashflow (P/CF) of 2.80 and a current market cap of C$ 130 million. The company has over 30 million listed outstanding units on the Toronto Stock Exchange (TSX).
In the third quarter of 2020, the company bitcoin accounts were 237 per cent up year-over-year (YoY). The digital firm reported an Adjusted EBITDA of C$ 4.8 million in the quarter, an increase of 346 per cent from C$ 1.1 million in Q3 2019. The tech financing company posted a net income of C$ 1.0 million in Q3 2020, against a loss of C$ 6.0 million in Q3 2019.
