Mogo Finance Technology Inc. (OTCQX: MOGOF) (TSX: MOGO) shares surged by as much as 35 percent on Tuesday after announcing its move to allow customers to have their own bitcoins as well as other cryptocurrencies in their digital wallets.
This is the biggest surge the Vancouver based financial technology has seen its initial public offering back in June 2015. The surge positions the company at a market value of C$94.4 million or $73.6 million, according to Bloomberg.
Mogo announced that it would launch its own dedicated blockchain to accelerate the use of bitcoins and other cryptocurrencies into its customers’ digital wallets.
The company also introduced Wayne Chen, as he joins as Senior Product Manager to lead the development of the blockchain. Chen was previously Senior Director and Head of Product at nTrust, where he developed a Bitcoin related technology.
Mogo’s main focus is building a digital bank in Canada to help consumers have more control. The company has already built its digital platform that allows users to gain access to Visa cards, mortgages, and personal loans. Now, Mogo is expanding the platform and integrating cryptocurrency.
Mogo already has a large customer base which positions the company ahead of others. Mogo is almost at 500,000 and still growing, according to Mogo CFO, Greg Feller.
“As a result, we believe Mogo is uniquely positioned to offer consumers the ability to own and use cryptocurrencies in a simple, transparent and trusted way.” said Feller.
“We’re basically building a digital banking experience for the next generation of consumers," said CEO and founder, David Feller.
“We have the ability now, because of the digital account that we built, to very quickly add new, innovative product and we’ve got the scale to roll them out," Feller said, “As we continue to roll out new products, people are realizing that we truly are this platform company and that obviously is part of what people are starting to appreciate in the market."
Nikhil Thadani, Mackie Research Capital Corp analyst, has now raised his price target from C$7 to C$9, saying that “Mogo should be able to offer consumers the ability to own and use cryptocurrencies in a simple, transparent and trusted way,” and that the “crypto rollout should offer more upside as details emerge.”
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