Following the massive rally of Ethereum (ETH), Canadian fintech company Mogo said it has purchased 146 units of the cryptocurrency valued at $405,880 at the time of the investment.
According to an announcement today, Mogo said it acquired the asset at an aggregate price of $2,780 per unit, which includes fees and other expenses.
Mogo to Increase Its Crypto Holdings
The investment is part of Mogo’s commitment to increase its cryptocurrency holdings, as it plans to commit 5% of its balance sheet to the asset class in the future.
The company intends to focus more on crypto assets, especially now that it has liquidated its equity investments in Vena Solutions, where it locked in a 116% profit.
Interestingly, Mogo seems to be delving deeper into the crypto space in recent times. Aside from its recent investment in ether, the company said it owns 18 bitcoins which is worth $1.05 million at the time of writing.
Greg Feller, President and CFO of Mogo, said:
“This initial investment in Ether complements our earlier investments in Bitcoin and reflects our belief in the long-term potential of blockchain technology and its position as a core component of a next generation financial technology platform.”
Not only is Mogo poised on crypto assets acquisition, the firm recently acquired a 19.99% stake in popular Canadian exchange Coinsquare, with an option to increase its stake to approximately 43%.
Meanwhile, Coinfomania reported in March that Mogo launched the world’s first bitcoin mortgage cashback reward program.
The initiative allows Mogo Visa Platinum Prepaid Card and digital spending accounts’ holders to obtain a mortgage and earn up to $3,100 cashback in the world’s largest cryptocurrency.
ETH Over BTC
Mogo’s acquisition of ether is one of the rare instances where institutional investors have chosen the cryptocurrency over bitcoin.
Per reports, more than 50% of institutional clients entering the crypto space usually invest their funds in BTC due to its popularity.
However, the reason for this decision is mainly due to the flaws associated with the second-largest cryptocurrency, such as high transaction fees and no fixed supply calculation.
Ethereum founder Vitalik Buterin has assured crypto enthusiasts that all issues with the network will be fixed once the EIP-1559 upgrade goes live later this year.
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