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The digital payments company said that its Ethereum investment is part of the company’s long-term strategy to gain exposure to digital assets. The company is willing to expose 5% of its cash reserve and investment portfolio to crypto.
On Monday, May 3, Canada-based publicly listed digital payments and fintech company Mogo announced purchasing Ethereum (ETH) nearly worth half a million dollars. The announcement comes just at a time when Ethereum has been trading around its all-time high levels.
However, the company’s ETH purchases have happened last week when ETH was trading under $3000. The official press release notes that Mogo purchased nearly 146 Ether (ETH) at an average price of $2780. Mogo is one of those companies looking to put its excess cash at work from its balance sheet.
Besides, the company’s management plans to make further investments in the blockchain and fintech ecosystem. Speaking of its recent Ethereum investments, 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”.
Ethereum has been currently on an unstoppable journey completely dominating the crypto market rally. At press time, ETH is trading 7.18% up at $3387 with a market cap of $392 billion. Over the last week, Ethereum (ETH) has toppled some of the biggest financial giants like PayPal, Bank of America and even Mastercard.
The ETH 24-hour trading volume has jumped 65% to above $55 billion as investors rush to grab the pie of the world’s second-largest crypto.
With Its ETH Purchase Mogo Is Expanding Its Crypto Portfolio
The latest ETH purchase is not the first crypto investment by Mogo. Previously, the company has already purchased around 18 Bitcoins from the open market at an average price of US$33,083. Besides, Mogo is willing to invest up to 5% of its reserve cash and investment portfolio in Bitcoin.
Besides, Mogo has also been involved significantly with product development and corporate development activity in cryptocurrency. The company holds a key strategic investment in one of Canada’s leading crypto trading platforms Coinsquare Ltd. The company currently has 19.99% ownership in Coinsqaure. Also, as per the agreed terms, Mogo can further increase its ownership to 43%.
Mogo’s recent investment in Ethereum (ETH) is a testament to the fact that corporates are increasingly focused on gaining exposure to ETH. After Bitcoin (BTC), ETH is truly the next institutional choice for crypto investment.