Mogo Announces Minority Investment in Canada’s First Regulated Custodian for Cryptocurrency Assets

Rhea-AI Summary

Mogo announced a minority investment in Tetra Trust Company, Canada's first qualified custodian for cryptocurrency assets. This investment aims to strengthen Mogo's stake in the growing cryptocurrency market, as Tetra Trust provides secure custody solutions for digital assets like bitcoin and ether. Notably, Mogo holds a 4% ownership in Tetra Trust and an approximate 39% stake in Coinsquare, which also supports Tetra. This development is essential as it positions Mogo to capitalize on the expanding cryptocurrency ecosystem in Canada.

Positive

• Mogo's investment in Tetra Trust enhances its presence in the cryptocurrency market.
• Tetra Trust is the first regulated cryptocurrency custodian in Canada, potentially increasing trust and adoption of digital assets.
• Mogo's 4% stake in Tetra Trust and 39% ownership in Coinsquare align with its strategy to lead in the digital asset space.

Negative

• None.

Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a digital payments and financial technology company, today announced a new minority investment in Tetra Trust Company (“Tetra Trust”), which launched today as Canada’s first qualified custodian for cryptocurrency assets.

Tetra Trust’s core business is the custody and storage of cryptocurrency assets including bitcoin, ether and a variety of other digital assets. Prior to Tetra’s launch, the Canadian market for cryptocurrency custody was limited to U.S. providers and unregulated Canadian custodians. For additional information on Tetra Trust, please refer to the company’s recent press release.

In addition to Mogo, Tetra Trust is backed by several industry participants including Coinsquare, Canada’s premier crypto exchange digital asset trading platform, Coinbase Ventures, an investment arm of Coinbase (NASDAQ: COIN), the largest publicly traded crypto exchange in the world and the Canadian Securities Exchange (CSE). As previously disclosed, Mogo has acquired an approximate 39% ownership position in Coinsquare. Coinsquare owns approximately 47% and Mogo has acquired approximately 4% of the outstanding common shares of Tetra Trust.

“This launch represents another important development for Coinsquare as they continue to build their leadership position in the Canadian market and develop the cryptocurrency ecosystem,” said Greg Feller, Mogo’s President. “As Canada’s first regulated custody provider, Tetra Trust serves a vital role in the trading of digital assets.”

About Mogo
Mogo is empowering its more than 1.5 million members with simple digital solutions to help them get in control of their financial health. Through the Mogo app, consumers can access a digital spending account with Mogo Visa* Platinum Prepaid Card featuring automatic carbon offsetting, easily buy and sell bitcoin, and get free monthly credit score monitoring, ID fraud protection, and personal loans. Mogo’s wholly-owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210708005535/en/

FAQ

What is Tetra Trust and its significance?

Tetra Trust is Canada’s first qualified custodian for cryptocurrency assets, providing secure storage for digital currencies like bitcoin and ether.

How much did Mogo invest in Tetra Trust?

Mogo acquired a 4% ownership stake in Tetra Trust as part of its minority investment.

What are Mogo's other investments in the cryptocurrency sector?

In addition to Tetra Trust, Mogo holds approximately 39% ownership in Coinsquare, a leading Canadian cryptocurrency exchange.

Why is Tetra Trust important for Canada's cryptocurrency market?

As the first regulated custody provider in Canada, Tetra Trust plays a crucial role in securing and promoting the trading of digital assets.

How does Mogo's investment in Tetra Trust affect its stock?

The investment is expected to strengthen Mogo’s position in the burgeoning cryptocurrency ecosystem, which could positively influence its stock performance.