Metromile is a pay-per-mile car insurance company based in San Fransisco. They operate around the world and have a platform that provides licenses to other companies globally. The company has recently published their Q2 financial results for the year 2021. And in the same Metromile reveals a Bitcoin purchase of $1 million. The company made it clear that it did not purchase any other cryptocurrency at all.
The Bitcoin purchase
In an SEC filing this afternoon, Metromile (NASDAQ: MILE), the car insurance company, stated:
"During the six months ended June 30, 2021, the Company purchased an aggregate of $1.0 million in digital assets, comprised solely of bitcoin."
— MacroScope (@MacroScope17) August 10, 2021
It is important to note that the news about the purchase was reported by the Twitter handle @MacroScope17. The tweet had many people talking about the purchase saying how incredibly small the position size is for the company. Reports suggest that the company has invested just 0.5% of its cash in Bitcoin, and it would have been better if the fraction was at least 5-10%. To be precise, the company’s balance sheet suggests that they had $202.584 million in cash during the time.
But many people saw the positive light in this purchase. If Metromile has made a purchase of $1 million in Bitcoin, then it is obvious that other companies would have too. These purchases are small, and we won’t know about them unless we go through the company’s balance sheet. This means that the adoption is rising, and companies are actually going a step ahead and taking the risk to invest in BTC.
Yes, the purchase size is small for a company on this scale, but something is better than nothing. What are your thoughts on the Bitcoin purchase Metromile reveals in its SEC filing? And do you think that we could find other companies too invested in BTC that we don’t know about? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin hovers around $46k as bulls take charge.