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Lemonade’s $1M Worth of BTC Purchase Rumors Clarified

Published 12/15/2021, 08:19 AM
Updated 12/15/2021, 08:30 AM
© Reuters. Lemonade’s $1M Worth of BTC Purchase Rumors Clarified

  • Lemonade’s $1 million worth of BTC purchase was a rumor.
  • The company hasn’t added bitcoin to its balance sheet.
  • Lemonade only bought a company that trades Bitcoin to put on its balance sheet.

A report surfaced on Twitter (NYSE:TWTR) today that America’s top-rated insurance company Lemonade has purchased $1 million worth of bitcoins to its balance sheet. To clear any doubt, the news was a hoax. Instead of buying BTC worth $1 million, it actually bought a company that trades Bitcoin to put on its balance sheet.

The tale of the company’s rumor spread swiftly from a screenshot of Lemonade and Metromile partnership announcement from SEC filing. In detail, Castle Island’s Co-Founder Matt Walsh tweeted that it “looks like $LMND is on the bitcoin balance sheet bandwagon. Paging Michael Saylor never replied.”

Even, the rising confusion and claim that Lemonade has added BTC to its balance sheet are even out of context, as the SEC filing clearly identifies Metromile as “The Company” in section (F-65).

On the other hand, speculations could be that the crypto space misunderstood the content in the SEC’s filing that might have dispelled the confusion. Expanding further, Metromile recently announced that it has bought Bitcoin.

CEO Dan Preston said,

We believe in the transformative potential of blockchain technology. We are still in the early days of realizing how this shift to decentralized finance and cryptocurrency will create enduring advantages in insurance, but we believe that offering bitcoin as an option for premium and claims payments would be an important first step.

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The company said that it intends to pay claims in BTC and accept insurance premium payment in Bitcoin.

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