© Reuters
VANCOUVER – Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), a Canadian digital wealth and payments company, has announced a strategic shift in its treasury management to include Bitcoin ETFs, with an initial investment authorization of up to 5 millions of dollars.
Greg Feller, president of Mogo Inc., expressed the company's continued confidence in Bitcoin as a long-term investment, citing the recent regulatory approval of spot Bitcoin ETFs and investments from major asset managers such as Fidelity and BlackRock (NYSE 🙂 as a reinforcement of Bitcoin's legitimacy as a global asset class.
The company, which has been involved in the cryptocurrency space since 2020, also highlighted its approximately 13% ownership in WonderFi Technologies Inc. (TSX: WNDR), a prominent cryptocurrency investment ecosystem regulated in Canada, as part of its commitment to providing shareholders with significant exposure to digital assets.
In the third quarter ended September 30, 2023, Mogo reported having $43.7 million in total cash and investments, which included $19.3 million in cash and restricted cash, and an investment portfolio valued at $24. 5 million dollars.
Founded in 2003, Mogo has grown to serve more than 2 million members and has an annual payout volume of $9.9 billion. The company offers a suite of financial products aimed at wealth creation and financial freedom, including commission-free stock trading and a managed investment solution through its Moka subsidiary.
Additionally, Mogo's digital payments platform, Carta Worldwide, offers cost-effective card program solutions in Europe and Canada.
This news is based on a press release from Mogo Inc.
InvestingPro Insights
As Mogo Inc. diversifies its treasury into Bitcoin and Bitcoin ETFs, investors may be interested in the company's recent performance metrics and market sentiment. According to data from InvestingPro, Mogo's market capitalization stands at a modest $52.28 million, reflecting the company's scale within the digital wealth and payments sector. Despite a negative Adjusted P/E ratio of -1.18 for the trailing twelve months as of Q3 2023, suggesting the company is not currently profitable, Mogo has demonstrated significant performance over the past week, with a total price return of 10.47%.
InvestingPro tips highlight that Mogo shares have seen strong performance over the past one and three months, with total price returns of 31.87% in both periods. This could indicate growing investor confidence or a positive market reaction to the company's strategic moves. Additionally, Mogo shares trade with high price volatility, which may appeal to certain investors looking for dynamic trading opportunities.
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