Mogo Reports Over 300% Increase in Bitcoin Transaction Volume in January

Rhea-AI Summary

Mogo (NASDAQ:MOGO) reported significant growth in January for its bitcoin services, with a 141% increase in new bitcoin account additions and a 323% rise in bitcoin trading volume compared to December. CEO David Feller emphasized the long-term growth potential of MogoCrypto amidst increasing interest in bitcoin among Canadians. Although currently not a major revenue contributor, MogoCrypto is highlighted as the fastest-growing product, which could enhance subscription and services revenue for 2021. Mogo aims to simplify bitcoin transactions through its user-friendly app.

Positive

• 141% increase in new bitcoin account additions in January over December.
• 323% growth in bitcoin traded on the Mogo platform in January versus December.
• MogoCrypto is positioned as a fast-growing product with long-term potential.

Negative

• Bitcoin transaction activity currently not a material revenue contributor.

Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a digital payments and financial technology company, today reported strong month-over-month growth in several key metrics in January related to its bitcoin account as an increasing number of Canadians look to gain access to this emerging digital asset.

Highlights include:

• A 141% increase in new bitcoin account additions in January compared with December; and
• A 323% increase in the dollar value of bitcoin traded on the Mogo platform in January versus December

“In January, we continued to experience growing demand for new MogoCrypto accounts and increasing transaction activity among members, highlighted by a more than 300% month-over-month increase in trading volume,” said David Feller, Mogo’s Founder and CEO. “We believe this product offers significant long-term growth opportunity for Mogo. There are more than $13 trillion in assets¹ held by Canadians and, while bitcoin continues to gain credibility as an asset class, the majority of Canadians do not own or have exposure to it. Our app offers a simple, transparent and low-cost way to buy and sell bitcoin, and members also benefit from our other financial health solutions, all integrated into one seamless, easy-to-use, digital account.”

Greg Feller, President and CFO of Mogo, added: “The continued growth in bitcoin transaction activity is very encouraging and although it is not yet a material contributor to our overall revenue, it represents our fastest-growing product. Assuming we continue to experience strong uptake with MogoCrypto, it could represent a meaningful component of the growth in our Subscription & Services revenue in 2021. Moreover, it creates the opportunity for engagement with all our products and long-term growth in member monetization.”

Mogo is one of the fintech pioneers in Canada and the only well-established Canadian company publicly traded on the TSX and NASDAQ, offering a simple and low-cost way to buy and sell bitcoin. MogoCrypto¹, launched in 2018, offers an easy and convenient way to buy and sell bitcoin in Canada. It enables members to buy and sell bitcoin at real-time prices instantly through the Mogo app, 24/7 from their mobile device.

¹Statistics Canada (2019)

²To be eligible for MogoCrypto, members must first pass Mogo’s identity and security verification process and agree to the MogoCrypto Terms and Conditions. For more information, see MogoCrypto Terms and Conditions: https://www.mogo.ca/pdfs/MogoCryptoTermsAndConditions.pdf

Forward-Looking Statements

This news release may contain "forward-looking statements" within the meaning of applicable securities legislation, including statements regarding the growth opportunity for MogoCrypto and the potential growth in Mogo’s Subscription & Services revenue. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the “Risk Factors” section of Mogo’s current annual information form, which is available at www.sedar.com and www.sec.gov. Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

About Mogo

Mogo is empowering its more than one 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/20210201005478/en/

FAQ

What growth did Mogo see in bitcoin accounts in January 2021?

Mogo experienced a 141% increase in new bitcoin account additions in January compared to December.

How much did bitcoin trading volume increase on Mogo's platform in January 2021?

Bitcoin trading volume increased by 323% in January 2021 compared to December.

What does the CEO of Mogo say about the potential of MogoCrypto?

David Feller stated that MogoCrypto offers significant long-term growth opportunities as demand for bitcoin increases.

How could MogoCrypto impact Mogo's revenue growth in 2021?

Assuming strong uptake, MogoCrypto could become a meaningful contributor to Mogo's Subscription & Services revenue.

Is MogoCrypto currently a major source of revenue for Mogo?

No, bitcoin transaction activity is not yet a material revenue contributor.