VANCOUVER, Jan. 23, 2018 /CNW/ - Mogo Finance Technology Inc. (TSX: MOGO; OTCQX: MOGOF) ("Mogo" or the "Company"), one of Canada's leading financial technology companies and a provider of innovative financial products to consumers, today announced the formation of a new subsidiary – Mogo Blockchain Technology Inc. ("Mogo Blockchain") – which will serve as the main vehicle for Mogo's blockchain operations, including new product development and strategic partnerships. As the first strategic initiative, Mogo Blockchain plans to begin bitcoin mining, through an agreement with DMG Blockchain Solutions ("DMG"), a Vancouver-based company focused on bitcoin mining hosting (mining as a service (MaaS)) and diversified blockchain platform development.
Under the agreement with DMG, Mogo will initially lease 1,000 bitcoin mining machines, which the Company expects to be operational later this quarter. The machines will be managed and operated by DMG under its MaaS model and will be located at DMG's facilities in British Columbia. Mogo and DMG have also entered into a letter of intent to form a dedicated joint venture for bitcoin mining. The expansion into bitcoin mining follows Mogo's announcement regarding the launch of MogoCrypto – a new product that will allow Canadians to easily buy and sell bitcoin through their MogoAccount and will bring a new level of convenience and transparency to bitcoin ownership.
"We strongly believe blockchain technology will have a profound impact on transforming financial services and will become a core part of a modern financial technology platform. Mogo is focused on building the best digital financial services experience for the next generation of Canadians, and we are committed to adding capabilities in blockchain through in-house development and strategic partnerships such as this one with DMG," said Greg Feller, President of Mogo and CEO of Mogo Blockchain. "We're excited to work with DMG given their extensive mining experience and attractive mining as a service model. We believe that gaining exposure to mining cryptocurrency such as bitcoin is an important part of building our competency around blockchain. In addition, this mining venture will enable us to generate our own supply of 'freshly minted' bitcoin for our MogoMembers once we introduce MogoCrypto later this quarter."
David Feller, Founder & CEO of Mogo, added: "This new subsidiary underscores our commitment to bringing blockchain innovation to financial services. With a focused effort and investment in this space, we will pursue applications that benefit Mogo and its customers, as well as opportunities to focus on enabling blockchain technologies that could potentially be licensed to other companies."
"As we pursue our objective to be the global leader in bitcoin mining hosting, we are pleased to form a new relationship with a well-established fintech company such as Mogo," said Dan Reitzik, CEO of DMG. "With a proven technology platform, strong and increasingly recognized brand, and quickly growing member base, Mogo is well positioned to make cryptocurrencies accessible to more Canadians."
Mogo (TSX: MOGO; OTCQX: MOGOF) — a Vancouver-based financial technology company — is focused on building the best digital financial services experience for the next generation of Canadians. Mogo's platform currently delivers five innovative products designed to help consumers get in control of their financial health. Built mobile first, users can sign up for a free MogoAccount in only three minutes and get access to free credit score monitoring, identity fraud protection, the Mogo Platinum Prepaid Visa® Card, mortgages and personal loans. The platform was engineered to deliver multiple financial products at scale and enable the launch of additional new innovative products, including the Company's recently announced MogoCrypto account which is expected to launch early in 2018. With more than 500,000 members and growing, Mogo continues to execute on its vision of becoming the financial brand for the next generation of Canadians. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).
DMG Blockchain Solutions Inc. is a full service blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG intends to be the global leader in bitcoin mining hosting, Mining as a Service (MaaS), crypto mining, forensics and diversified blockchain platform development.
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the launch of MogoCrypto and future blockchain initiatives. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth and its ability to expand into new products and markets are subject to a number of conditions, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the "Risk Factors" section of Mogo's annual information form dated March 7, 2017, which is available at www.sedar.com. Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
SOURCE Mogo Finance Technology Inc
For further information: Craig Armitage, Investor Relations, [email protected], (416) 347-8954