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VANCOUVER - Canadian fintech company Mogo Inc. (NASDAQ:MOGO; TSX:MOGO), whose stock has surged over 61% in the past six months according to InvestingPro data, has completed a strategic investment acquiring approximately 9% of Digital Commodities Capital Corp. (CSE:DIGI; OTCQB:DGCMF), according to a press release statement.
The $1 million investment was made through a non-brokered private placement, with Mogo subscribing for 13.3 million units priced at $0.075 per unit. Each unit consists of one common share and one warrant exercisable at $0.10. InvestingPro data shows Mogo maintains a healthy financial position with a current ratio of 3.94, indicating strong liquidity to support such strategic investments.
Digital Commodities positions itself as an investment issuer primarily focused on acquiring and holding Bitcoin and physical gold as long-term reserves. The company describes its approach as a "hard, non-fiat asset base" managed with discipline. For investors interested in detailed analysis of companies like Mogo, InvestingPro offers comprehensive research reports covering 1,400+ stocks, transforming complex data into actionable insights.
Greg Feller, President and Co-founder of Mogo, said the company is aligned with Digital Commodities’ strategy as "both operators and long-term believers in Bitcoin." While InvestingPro analysis indicates the stock trades with high volatility (Beta: 4.76), analysts anticipate improved performance despite current unprofitability.
This investment adds to Mogo’s portfolio of crypto-related investments, which includes a minority stake in Gemini. It aligns with Mogo’s recently announced board authorization to allocate up to $50 million to Bitcoin.
Mogo describes itself as a "dual-compounding platform" that combines a fintech operating business with a Bitcoin treasury strategy. The company offers digital wealth management and lending services through its platform.
Digital Commodities’ business model focuses on providing public market investors access to Bitcoin and gold without dilution through operating businesses or diversification into other assets.
In other recent news, Mogo Inc. has reported a modest year-over-year increase in its Q1 2025 revenue, reaching $16.7 million, up from $16.4 million. The company maintained a positive adjusted EBITDA of $1.1 million, reflecting a 6.1% margin. Mogo’s strategic focus on AI integration, termed "Mogo 3.0," is a significant development, with AI now powering over 60% of customer support interactions. In another noteworthy move, Mogo announced a strategic allocation of up to C$50 million to Bitcoin as part of its long-term capital preservation strategy. This decision aligns with Mogo’s approach to using Bitcoin as a benchmark for future capital allocation. Furthermore, H.C. Wainwright reiterated a Buy rating on Mogo, setting a price target of $4.00, emphasizing the company’s exposure to Bitcoin without direct operational impact from cryptocurrency price fluctuations. Additionally, Mogo repurchased approximately 2% of its outstanding shares in Q2 2025, reducing its total number of shares to about 24 million. The company continues to evaluate future capital allocation decisions against its "Bitcoin hurdle rate," aiming for opportunities that outperform Bitcoin’s long-term return profile.
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