Mogo Finance Technology Inc., a Canadian fintech firm listed on Nasdaq (NASDAQ:MOGO) and Toronto Stock Exchange (TSX:MOGO), is now giving its members who take out a new mortgage or refinance an existing one the chance to earn cash to buy bitcoin using its bitcoin rewards account.
In an announcement on Monday, Vancouver-based Mogo said the cashback rewards program now includes “MogoMortgage” and will give users up to C$3,100 (US$2,461) in cashback rewards. The rewards are distributed in dollars into clients’ accounts which, in turn, allows clients to buy bitcoin through the MogoCrypto program within the Mogo app.
Canada’s residential mortgage market is estimated at C$1.7 trillion (US$1.35 trillion). According to the company, this new scheme allows Canadians to get a mortgage while earning a cash reward to purchase bitcoin.
“Given the volatility and speculative nature of bitcoin, there’s an increasing number of Canadians who are looking for ways to participate without risking their own money, and our bitcoin rewards program meets this demand,” said David Feller, CEO of Mogo.
MogoMortgage is currently available to Mogo Members in a number of selected provinces including Alberta, British Columbia, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
The rewards program already applies to the Mogo Visa Platinum prepaid cardholders, allowing users to earn 1% cashback on purchases in Canada and 2% for foreign transactions, which can then be exchanged for bitcoin within the app.
In February, Mogo announced it would acquire a 19.99% stake in the Canadian cryptocurrency exchange Coinsquare with the rights to increase ownership up to 40%.
Mogo was founded in 2003 and had an initial public offering on the TSX in June 2015 and has a market cap capitalization of over CA$500 million.
In December, the company announced its plan to make a corporate investment of up to CA$1.5 million (US$1.19 million) in bitcoin and said it will consider additional purchases throughout 2021.
At the time of publication, Mogo shares listed on the Nasdaq were trading up 4% at US$8.82 and up 2.63% at CA$10.91 on the TSX.