Owning Bitcoin and Securing Your Future : Auto Insurance Company Metromile Unveils Its Reserves

By: Bharggavi Ssayee

August 14, 2021 6:04 AM

Insurance company Metromile reveals that it bought $ 1 million worth of Bitcoins in June 2021. However, the company only allocates a tiny fraction of its available funds in its Bitcoin investments, even though it wants to integrate the latter in its offers.

Metromile rolls over a few Bitcoins

Insurance company Metromile indicates in an August 10, 2021 filing with the SEC that it purchased $ 1 million worth of Bitcoins in June 2021. This amount represents 10% of the funds the company previously said it wanted to invest in. Bitcoin. Metromile is a San Francisco-based, Nasdaq-listed digital insurance platform and pay-per-kilometer auto insurer.

She also said she recorded $ 100,000 in impairment losses on her bitcoins. As of June 30, 2021, Metromile held 25.6 BTC valued at $ 900,000 during the time.

The company said in its second quarter 2021 financial report that it had $ 202.6 million in cash and cash equivalents. Its investment in BTC actually represents about 0.5% of available funds. This rate is relatively low, compared to investments by individuals who most often allocate 1% to 3% of their net assets to Bitcoin. This is for example the case of the Canadian businessman, Kevin O'Leary, who announced on March 1, 2021 that he wanted to allocate 3% of his wallet to Bitcoin.

Metromile and Axa: Bitcoin as a hedge

May 2021, Metromile announces that it wants to acquire an additional $ 10 million during the second quarter in order to include the king of cryptocurrencies in its offer. The American startup wants to "offer policyholders the ability to pay for insurance and receive payment for eligible and approved insured claims in Bitcoins or dollars."

Metromile wants to take the same path as Axa, whose Swiss branch has accepted Bitcoin since April 2021. The company's customers can pay their bills directly from their BTC wallet.

Bitcoin's entry into the balance sheets of traditional financial companies, such as old fund managers or insurance companies, became commonplace over the months. Bitcoin is increasingly becoming the go-to asset to acquire to protect against inflation, but also serves as a form of payment for insurance companies like Metromile. New finance also has its sights set on the insurance industry, such as Coinbase wanting to set up a subsidiary to cover the risks of the exchange.