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 and Bitcoin ETFs, with an initial investment authorization of up to $5 million.
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 the investments by major asset managers like Fidelity and BlackRock (NYSE:BLK) as 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 regulated crypto investing ecosystem in Canada, as part of its commitment to providing shareholders with significant exposure to digital assets.
As of the third quarter ended September 30, 2023, Mogo reported having $43.7 million in cash and total investments, which included $19.3 million in cash and restricted cash, and an investment portfolio valued at $24.5 million.
Mogo, founded in 2003, has grown to serve over 2 million members and boasts an annual payments volume of $9.9 billion. The company provides a suite of financial products aimed at wealth creation and financial freedom, including commission-free stock trading and a managed investing solution through its subsidiary Moka.
Additionally, Mogo's digital payments platform, Carta Worldwide, offers cost-effective card program solutions in Europe and Canada.
This news development is based on a press release statement 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 InvestingPro data, Mogo's market capitalization stands at a modest $52.28 million, reflecting the scale of the company within the digital wealth and payments sector. Despite a negative adjusted P/E ratio of -1.18 for the last twelve months as of Q3 2023, which suggests that the company is not currently profitable, Mogo has demonstrated a significant return over the last week, with a 10.47% price total return.
InvestingPro Tips highlight that Mogo's stock has experienced a strong return over the last month and three months, with price total returns of 31.87% for both periods. This could indicate growing investor confidence or a positive market reaction to the company's strategic moves. Additionally, Mogo's stock trades with high price volatility, which may appeal to certain investors looking for dynamic trading opportunities.
For those considering a deeper dive into Mogo's financial health and future prospects, InvestingPro offers additional tips and metrics. Interested readers can explore further by visiting https://www.investing.com/pro/MOGO and can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 10 more InvestingPro Tips available, investors can gain a comprehensive understanding of Mogo's financial landscape and make informed decisions.
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