When the metromile announced its intention to allocate $10 million to Bitcoin in the second quarter of 2021, it was met with scepticism.
Metromile, a technology company based in San Francisco, has purchased Bitcoin with 10 percent of the funds it had previously stated would be allocated to cryptocurrency investments.
According to a filing with the Securities and Exchange Commission, or SEC, on August 10, Metromile reported that it had purchased $1 million in Bitcoin (BTC) in June from a cryptocurrency exchange.
However, the firm suffered a $100,000 loss on the initial cryptocurrency purchase, with approximately $900,000 in Bitcoin as of June 30, or 25.6 BTC at the time of the purchase.
According to Metromile’s financial report for the second quarter of 2021, the company had $202.6 million in cash and cash equivalents as of June 30, indicating that its Bitcoin investment accounted for approximately 0.5 percent of total funds on hand.
Some experts recommend putting between 1 percent and 3 percent of one’s net worth into cryptocurrency investments.
According to the company’s May announcement, it intends to allocate $10 million to Bitcoin in the second quarter of 2021, according to the SEC.
At the time, Metromile announced that it would allow its policyholders — for whom it provides pay-per-mile car insurance — to pay for its services and receive compensation from claims in the cryptocurrency Bitcoin.
Metromile announced in the second quarter of 2021 that the number of policies in force had remained “roughly flat” when compared to the number in force in the first quarter of the year due to “industry-wide unexpected regulatory delays.”
However, compared to the same period last year, the firm’s insurance revenue increased by more than 22% over the previous year.
Metromile stock, which trades under the ticker MILE on the Nasdaq, fell sharply on Monday after having traded consistently above $7.00 since May. The price of bitcoin has dropped by approximately 25% in the last two days, from $6.97 to $5.24 at the time of publication, resulting in a market capitalization of $660 million for the cryptocurrency.
