Insurance Firm Metromile Invests $1 Million On Bitcoin

Highlights

  • The adoption of digital assets has been fast expanding, according to Metromile, underlining the shift in customer behaviour.
  • Metromile, a digital insurer, has set aside $1 million in Bitcoin, which is now held by a third-party custodian.
  • The company announced in the previous quarter that it planned to invest $10 million in the major cryptocurrency.

Dan Preston sitting on chair
Dan Preston, CEO of the insurance company Metromile

Metromile, a digital insurance startup, recently announced that it has purchased $1 million in Bitcoin. The corporation indicated in the second quarter of 2021 that it intends to allocate $10 million to the major cryptocurrency.

Metromile reported in a statement with the US Securities and Exchange Commission (SEC) that it purchased $1 million in Bitcoin in June.

The tech firm said it had lost $100,000 since its original purchase and had around $900,000 in BTC as of the last day of June.

The Bitcoin investment accounted for about 0.5 percent of the firm’s total assets. According to Metromile’s Q2 financial report, the digital insurance had $202.6 million in cash and cash equivalents on hand.

The car insurance company also revealed that policyholders will be able to pay for insurance and receive payments in Bitcoin or fiat currency.

Metromile would be the first insurance business to accept digital assets as payment for premiums and claims.

METROMILE’S CONVINCING STATEMENT

Payments made in cryptocurrency would align with Metromile’s dedication to innovation and “promoting financial resilience,” according to the corporation.

A third-party custodian holds the firm’s Bitcoin. To ease insurance payouts in Bitcoin, Metromile has not specified when or if it will purchase additional crypto assets.

According to Dan Preston, CEO of the insurance company, drivers should have greater control over how they wish to pay for insurance.

For more interesting and informative Twitter Talks and News, stay connected.