Insurer Metromile Buys Another Tranche of Bitcoin for $1mln

Metromile, a San Francisco-based tech company, has purchased Bitcoin with 10% of the money it earlier said will be dedicated to cryptocurrency (BTC). Metromile acknowledged purchasing $1 million in Bitcoin in June, as per a filing with the United States Securities and Exchange Commission (SEC) on Tuesday.

Nevertheless, the company is staring at a hypothetical loss of $100,000 on the first cryptocurrency purchase, reflecting ownership of about $900,000 (or 25.60 BTC) in Bitcoin at the end of June 30. According to Metromile’s financial report for 2Q21, the business had $202.6 million in cash and cash equivalents at the end of June 30, implying that its Bitcoin investment accounted for about 0.5% of total funds available.

Some professionals suggest investing 1% to 3% of one’s personal wealth in cryptocurrency. The SEC filing comes after the firm said in May that it plans to devote $10 million to Bitcoin in 2Q21.During that period, Metromile said that its policyholders – Metromile provides pay-per-mile vehicle insurance — will be able to pay for services and get reimbursement from claims in Bitcoin.

Metromile stated in 2Q21 that the count of policies in effect was “almost unaltered” compared to the first quarter owing to “industry-wide unforeseen regulatory postponements.” Nevertheless, the company’s insurance income grew by over 22% during the comparable period of 2020.

Metromile stock, which trades under the Nasdaq ticker MILE, fell significantly on Monday after remaining over $7.00 since May. The price has dropped approximately 25% in the past two trading sessions, from $6.97 to $5.24 , bringing the market valuation to $660 million.