Online lender, Mogo Finance Technology Inc. (TSX:MOGO) has created a new subsidiary named Mogo Blockchain Technology Inc. to serve as the main vehicle for Mogo’s blockchain operations, including new product development and strategic partnerships. Mogo Blockchain will initially begin bitcoin mining through an agreement with DMG Blockchain Solutions Inc., a Vancouver-based mining-as-a-service (MaaS) company.
Under the agreement with DMG, Mogo will lease 1,000 mining machines, which are expected to be in operation later this quarter. These machines will be managed and operated by DMG at its facilities in British Columbia. Mogo and DMG also intend to enter a joint venture for bitcoin mining.
Greg Feller, president of Mogo and CEO of Mogo Blockchain, stated:
“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.”
The formation of Mogo Blockchain follows up on the company’s announcement earlier this year regarding MogoCrypto, a new product that will allow Canadians to easily buy and sell bitcoin through their MogoAccounts and bring a new level of convenience and transparency to bitcoin ownership. The expected launch of MogoCrypto is Q1 2018.
David Feller, founder, and 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.”
Mogo now joins a growing list of Canadian companies entering the rapidly expanding blockchain space. On the Canadian Securities Exchange alone, the number of blockchain-related companies grew from just one in 2016 to 24 last year.
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