The ranks of institutional investors who invest in Bitcoin are growing every day. On the eve of the Canadian financial company Mogo, whose shares are traded on the NASDAQ, announced an investment of $ 1.5 million in Bitcoin.
On this occasion, representatives of the company published an official press release.
Mogo is a financial company founded in 2003. It offers its clients individual loans, identity fraud protection, mortgages, prepaid Visa and other services. In 2018, Mogo launched the MogoCrypto app, “The Easiest Way to Buy and Sell Bitcoins in Canada.” In general, the company and its services are well known in the country, Decrypt notes.
Bitcoin is getting more and more popular
Here’s a quote from Mogo CFO Greg Feller on the situation. In it, he notes that this investment is not final, and the series of investments in the first cryptocurrency may continue.
This initial financial investment builds on Mogo’s significant investment in developing new Bitcoin-related products over the past several years. The company plans to initially channel a small portion of our capital towards investing in bitcoins and consider additional investments in cryptocurrency as we monetize a portion of our existing $ 17 million portfolio.
In other words, Mogo is only “eyeing” Bitcoin so far. If the price of the cryptocurrency starts to rise sharply, it is unlikely that the company’s management will miss the opportunity to make money on the digital asset. Therefore, we believe that another batch of investments in BTC from Mogo should be expected in the future.
BTC is trading at $ 23,562 today, a 29 percent lead over 14 days ago. The trading volume of the cryptocurrency per day is $ 32 billion. Here is a graph of the asset’s behavior since the beginning of summer 2020.
Recall that the trend of large investments in Bitcoin from well-known companies started this year. One of the most high-profile investments was the purchase of the MicroStrategy cryptocurrency, which in a few months finished off its total investment volume of more than 70 thousand bitcoins. At the same time, since the management of the company acquired BTC, including in the summer – that is, at noticeably lower prices – the average price of acquiring a cryptocurrency is slightly less than 16 thousand dollars.
This means that, taking into account the current Bitcoin exchange rate of 23.56 thousand dollars, the company’s earnings are already enormous.
However, MicroStrategy is not alone in spending hundreds of millions of dollars on BTC. A list of other giants who have cryptocurrency at their disposal can be found in a separate article.
Here’s another statement from company representatives.
We strongly believe in Bitcoin as an asset class and believe that this investment is in line with our goal of making crypto investment available to all Canadians. In addition, we believe that Bitcoin represents an attractive investment for our shareholders with significant long-term potential as its worldwide distribution continues to grow.
Conclusion: Mogo management made the right decision. Cryptocurrencies are becoming a new trend among institutions, so it is rather foolish to resist innovation now. The best way out of all possible options is to place part of your portfolio in BTC and make money on it. At the very least, analysts of companies that have at their disposal a large amount of free millions of dollars came to this.
We believe that this trend will only intensify. Now Bitcoin seems to be stronger than ever, so the number of large cryptocurrency investors is likely to grow in the near future.