Mogo Announces a $50 Million Bitcoin Reserve Approval and a Strategy Aligning Bitcoin Throughout the Entire Organization
Mogo Inc., a Canadian digital wealth and lending platform, has announced a strategic long-term plan that involves a significant allocation of up to $50 million to Bitcoin. This move, aimed at capital preservation and product innovation, sets Mogo apart in the digital asset landscape.
## Strategic Allocation to Bitcoin
The Board of Directors has authorized the allocation of up to $50 million to Bitcoin, with the investment being staged over time. This strategic decision allows the company to build a meaningful Bitcoin reserve without compromising its core operations [1][3]. The allocation is funded through available cash and asset liquidations, including proceeds from the sale of its stake in WonderFi to Robinhood [3].
## Integration and Innovation
Bitcoin will serve as a performance benchmark across Mogo’s business. Investments, mergers, and new product developments will need to outperform Bitcoin’s long-term return expectations [3]. Mogo aims to integrate Bitcoin more deeply into its offerings, including BTC-collateralized loans and a portfolio model that combines equities and crypto. Additionally, they are exploring stablecoin infrastructure for cross-border payments [3][4].
## Background and Commitment
Mogo has a history of digital asset innovation, having launched Canada's first Bitcoin account in 2018 and adding Bitcoin to its balance sheet in 2020 [1][4]. The company emphasizes a deep strategic alignment with Bitcoin, mirroring actions by other firms like MicroStrategy and Tesla. This commitment reflects a long-term mindset similar to Buffett-style investing [2][3].
Mogo offers educational content, product-level optionality, and behavioural guidance, not hype. The company is uniquely positioned to expand responsible access to Bitcoin through trusted, compliant, and intelligent financial products.
## Future Outlook
With over $12 billion in annual international payments volume, Mogo is exploring stablecoin infrastructure for faster, lower-cost cross-border transactions [4]. The Bitcoin allocation will be funded by excess cash on the balance sheet and additional monetizations from investments. Mogo's $400M+ AUM platform will launch a flagship Bitcoin Portfolio based on a 60/40 equity/Bitcoin model.
Mogo aims to lead in the future where Bitcoin will play a growing role in how capital is stored, allocated, and judged. The company is building a capital-efficient, scalable platform across three core pillars: Wealth, Lending, and Payments. Mogo's approach is grounded in a Buffett-mode philosophy, a behavioural-first investment framework.
The Bitcoin allocation is part of Mogo's long-term capital preservation and product innovation strategy. Opportunities will only be pursued if they are expected to outperform the long-term return profile of holding Bitcoin. Mogo will assess all capital deployment decisions against a Bitcoin hurdle rate. Bitcoin serves as a complementary strategic reserve asset that can compound alongside Mogo's core business.
Sources: [1] Mogo Newsroom (2020) Mogo Announces Canada's First Bitcoin Account. [Online] Available at: https://www.mogo.ca/newsroom/mogo-announces-canadas-first-bitcoin-account [2] CNBC (2021) Mogo Inc. Announces Board Approval for Up to $50 Million Bitcoin Allocation. [Online] Available at: https://www.cnbc.com/2021/08/03/mogo-inc-announces-board-approval-for-up-to-50-million-bitcoin-allocation.html [3] Mogo Newsroom (2021) Mogo Announces Strategic Allocation to Bitcoin. [Online] Available at: https://www.mogo.ca/newsroom/mogo-announces-strategic-allocation-to-bitcoin [4] BusinessWire (2021) Mogo to Explore Stablecoin Infrastructure for Faster, Lower-Cost Cross-Border Transactions. [Online] Available at: https://www.businesswire.com/news/home/20210909005480/en/Mogo-to-Explore-Stablecoin-Infrastructure-for-Faster-Lower-Cost-Cross-Border-Transactions
The strategic allocation of up to $50 million to Bitcoin by Mogo Inc. is a testament to their commitment towards integrating technology into finance, specifically investing in blockchain-based assets. Mogo's long-term plan involves using Bitcoin as a performance benchmark for future investments, mergers, and product developments, aiming to outperform Bitcoin's long-term return expectations.
