Mogo (MOGO.Q) closed its all-stock acquisition of Moka Financial Technologies today, according to a press release.

The deal expands Mogo’s member base to 1.6 million and their wealth offering to include saving and investing products. The acquisition also advances Mogo’s plan to launch a free stock trading solution for Canadians in 2021.

“We welcome the Moka team to the Mogo platform. This acquisition accelerates our expansion in the $4 trillion wealth management industry, a market that is undergoing rapid digital disruption and where we believe we can create tremendous value for our members and our shareholders. By adding Moka’s digital saving and investing products, technology platform and experienced fintech team, we move forward with one of the most compelling and differentiated value propositions in Canadian finance. Moka will form the core of MogoWealth, along with MogoCrypto, making Mogo’s digital wallet the most comprehensive solution in Canada,” said David Feller, Mogo’s founder and CEO.

Mogo’s mission is to help their over one million customers get a handle on their financial health through their Mogo app. They have an easily accessible digital spending account with their Mogo Visa Platinum prepaid card with carbon offsetting, a peculiar program that offsets a pound of carbon dioxide for every dollar you spend.

The company also will be bringing on Philip Barrar, the founder and CEO of Moka, as their new chief innovation officer. Also included are Dr Liam Cheung, Moka’s chairman and partner at Moka shareholder Tactico, who is expected to join Mogo’s board following their annual general meeting. He brings 25 years of experience to the table.

Ethereum

Earlier this week, the company purchased 146 ether, at an average price of USD$2,780. Ether is the token of the Ethereum blockchain, itself an open-source, decentralized software platform that touts itself as the world’s first decentralized supercomputer.

The company’s Ethereum purchase is part of management’s plans to give the balance sheet a much needed boost in the blockchain and fintech ecosystem. Consider that this transaction happened approximately two days ago at the price point listed above, and ETH has since broken an all time high before dipping down to $3,408, then the company’s already pulled in some speculative profit from the buy.

Not bad. Especially when you consider their recently acquired 19.99% stake in popular Canadian-based digital asset trading platform Coinsquare, with an option to jump 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.

Source: stockwatch.com

Mogo is down a nickel on the news, and is now trading at $8.14.

—Joseph Morton

Written By:

Joseph Morton

Joseph is a Vancouver-based author and journalist with both a communications degree and journalism diploma (and a few novels) under his belt. His joie de vivre is to spin difficult technical topics into more human-centric narratives. Buy him a coffee and he'll talk your ear off for hours about privacy issues, blockchain, cryptocurrency and martial arts. Don't talk to him if you're either a tomato, a bully, or if you're not a fan of either 1984 or Tender is the Night. No. You can still talk to him. Just be prepared to be told why you're wrong.

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