Brief:
- The Nasdaq-listed auto insurance company Metromile has purchased $1 million in bitcoin.
- The company plans to “become the first insurance company to allow policyholders the option to pay for insurance and receive payment for eligible claims in either bitcoin or dollars.”
Nasdaq-listed Insurance firm Metromile revealed that it had purchased bitcoin worth $1 million, In the second quarter of 2021. n the second quarter of 2021, the company stated that it has intentions to allocate $10 million to the leading cryptocurrency.
According to the filing with the US SEC, Metromile stated that “In June 2021, the company purchased and received $1.0 million of bitcoin. During the three months and six months ended June 30, 2021, the company recorded $0.1 million of impairment losses on bitcoin.”
The Bitcoin investment made up around 0.5% of funds available at the firm. Metromile’s Q2 financial report revealed that the digital insurer held $202.6 million in cash and cash equivalents.
The firm highlighted that cryptocurrency adoption has been increasing rapidly worldwide. This emphasizes that the decentralization of finance could shift consumer behavior and financial infrastructure.
According to Metromile, accepting crypto payments would align with the company’s commitment to innovation and “promoting financial resilience.”
Earlier, Metromile said it would allow its policyholders to pay for its services and receive compensation from claims in Bitcoin.
Metromile announced the number of its policies in force in Q2 had been “roughly flat” compared to that of Q1. This was due to “industry-wide unexpected regulatory delays”. However, the firm’s insurance revenue increased more than 22% over that of the same period last year.
