Mogo Inc. (NASDAQ:MOGO) stock soared 205% after the Canadian digital wealth and lending platform announced its Board of Directors has authorized the allocation of up to $50 million to Bitcoin as part of a long-term capital preservation and product innovation strategy.
The company plans to fund this allocation through excess cash on its balance sheet and future monetizations from its investment portfolio, including stakes in US-based crypto exchange Gemini and Canadian technology company Hootsuite. Mogo expects to hold approximately $50 million in cash and investments following the anticipated close of the WonderFi-Robinhood transaction in the second half of 2025.
"Building on our history and experience in crypto, we’re making a long-term strategic commitment to Bitcoin, backed by deep conviction and the flexibility to build a meaningful Bitcoin reserve that aligns with our capital priorities and market outlook," said Greg Feller, President & Co-Founder of Mogo.
The company has been at the forefront of digital asset innovation for nearly a decade, launching Canada’s first Bitcoin account in 2018 and becoming the third US-listed company to add Bitcoin to its balance sheet in 2020, following MicroStrategy and Block, and ahead of Tesla (NASDAQ:TSLA).
In addition to the Bitcoin allocation, Mogo will now assess all capital deployment decisions against a Bitcoin hurdle rate. The company will only allocate capital to opportunities expected to outperform the long-term return profile of holding Bitcoin, whether considering M&A, internal investments, or share repurchases.
Mogo also plans to integrate Bitcoin across its core businesses, including its wealth management platform with over $400 million in assets under management, its lending products, and its payments system that processes over $12 billion in annual international payments volume.