Benzinga | May 3, 2021 08:24AM EDT

Mogo Purchases 146 Ether At Avg. Price Of $2,780; Co. Says Plans To Invest Up to 5% Of The Value Of Its Cash And Investment Portfolio In Cryptocurrencies

Mogo plans to Invest up to 5% of the value of its cash and Investment Portfolio in cryptocurrencies

Investment complements Mogo's broader cryptocurrency strategy including its recent investment in Canada's leading digital asset platform, Coinsquare

All figures in Canadian $ unless otherwise stated.

Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) ("Mogo" or the "Company"), a digital payments and financial technology company, today announced that it has purchased approximately 146 Ether (ETH) at an average price US$2,780. Ethereum is an open-source, block-chain based, decentralized software platform that uses its own cryptocurrency, Ether.

Mogo's Ethereum investment is consistent with management's plans to increase the Company's on balance sheet investment in the blockchain and fintech ecosystem, particularly as it monetizes its portfolio of equity investments which had a value of approximately $18.4 million as at December 31, 2020. Last week, Mogo announced the sale of its investment in Vena Solutions for proceeds of $4.7 million, a 116% increase from the book value at December 31, 2020. In addition, the Company has already invested in Bitcoin, acquiring approximately 18 Bitcoins to date in open market transactions at an average price of US$33,083. Mogo plans to invest up to 5% of its cash and investment portfolio value in cryptocurrencies.

This initial financial investment in Ethereum builds on Mogo's significant product development and corporate development activity in cryptocurrency. Mogo recently closed its previously announced strategic investment in Coinsquare Ltd. ("Coinsquare"), Canada's leading digital asset trading platform, pursuant to which Mogo has acquired a 19.99% ownership interest in Coinsquare and maintains an option to increase its stake to 43%.

"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," said Greg Feller, President and CFO of Mogo.