💎 5 of the Mag 7 report earnings next week. Which one should you buy?Ask WarrenAI

Mogo stock soars after announcing C$50M Bitcoin allocation strategy

Published 2025-07-03, 07:38 a/m
Mogo stock soars after announcing C$50M Bitcoin allocation strategy

Mogo stock soars after announcing C$50M Bitcoin allocation strategy

Investing.com - Mogo Finance Technology (NASDAQ:MOGO) shares surged 112.4% in Wednesday trading, significantly outperforming the Russell 2000’s 1.3% gain, following a major cryptocurrency strategy announcement. The surge adds to the company’s impressive 105.6% return over the past week, with InvestingPro data showing the stock trading at 3.47 times its 52-week low.

The company revealed its board of directors has authorized allocating up to C$50 million to Bitcoin as part of its long-term capital preservation and product innovation strategy. Mogo also announced it would use Bitcoin as the hurdle rate for future capital allocation decisions, integrating the cryptocurrency fully into its corporate framework. With a market capitalization of $62 million, this represents a significant strategic shift for the company.

While the company maintains adequate balance sheet strength, with a healthy current ratio of 3.94, the Bitcoin position will likely be built gradually as Mogo remains committed to maintaining necessary working capital in dollars. The company indicated that additional monetization of its investment portfolio could potentially accelerate Bitcoin accumulation through excess capital generation. Discover more financial health metrics with InvestingPro, which offers 12+ additional insights about MOGO’s performance.

H.C. Wainwright reiterated a Buy rating on Mogo with a $4.00 price target following the announcement. The research firm noted the strategy provides MOGO investors exposure to Bitcoin without operations being directly impacted by daily cryptocurrency price fluctuations.

Mogo is expected to provide additional details about this strategic decision when it reports second-quarter 2025 financial results in early August.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

In other recent news, Mogo Inc. reported its Q1 2025 financial results, revealing a slight increase in revenue to $16.7 million from $16.4 million the previous year. The company maintained a positive adjusted EBITDA of $1.1 million, reflecting a 6.1% margin, and achieved positive cash flow from operations for the tenth consecutive quarter. Mogo has also announced a strategic allocation of up to $50 million to bitcoin, as part of its long-term capital preservation and product innovation strategy. This move underscores Mogo’s commitment to integrating digital assets into its core business functions. Additionally, the company has launched "Mogo 3.0," marking a significant integration of AI across its operations. Mogo’s strategic focus on AI aims to enhance efficiency and customer experience, with over 60% of customer support interactions now managed by AI agents. While Mogo maintains a conservative outlook for 2025, it continues to explore AI-driven innovations and operational efficiencies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Should you invest $2,000 in MOGO right now?

ProPicks AI are 6 model portfolios created by Investing.com which identify the best stocks for investors to buy now. The stocks that made the cut could produce monster returns in the coming years. Is MOGO one of them?

Unlock ProPicks AI to find out

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.