Nasdaq-listed auto insurance company Metromile bought $ 1 million in bitcoins. The company plans to “become the first insurance company to offer policyholders the ability to pay for insurance and receive payment for qualifying claims in bitcoin or dollars.”
Auto Insurance Platform Adds Bitcoin To Its Balance Sheet
Nasdaq-listed insurance company Metromile Inc. disclosed its bitcoin purchase in a filing with the U.S. Securities and Exchange Commission (SEC) on August 10. Metromile is a digital insurance platform and pay per mile auto insurer.
The file specifies:
In June 2021, the company bought and received $ 1.0 million worth of bitcoin. In the three months and six months ended June 30, 2021, the company recorded $ 0.1 million in bitcoin impairment losses.
“No realized gain or loss was recorded during the three months and six months ended June 30, 2021”, details the file. “As of June 30, 2021, the carrying value of the company’s digital bitcoin assets held was $ 0.9 million, reflecting accumulated write-downs of $ 0.1 million. The fair market value of bitcoin held as of June 30, 2021 was $ 0.9 million. “
Metromile announced in May that “it will soon provide policyholders with the ability to pay for insurance and receive payment for eligible and approved insured claims in bitcoin or dollars.” Metromile aims to be the first insurance company to accept premiums and pay claims in cryptocurrency.
In its letter to shareholders for the first quarter of 2021, the company said:
As the adoption of cryptocurrency grows rapidly around the world, it becomes clear that the decentralization of finance has the potential to change consumer behavior and financial infrastructure….
The auto insurer joins a growing list of companies that have bought bitcoin for their corporate treasury, including Microstrategy by Michael Saylor, Tesla by Elon Musk and Jack Dorsey’s Square.
What do you think of the fact that Metromile is buying bitcoin? Let us know in the comments section below.
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