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.”
Auto Insurance Platform Adds Bitcoin to Balance Sheet
The Nasdaq-listed insurance company Metromile Inc. disclosed its bitcoin purchase in a filing with the U.S. Securities and Exchange Commission (SEC) dated Aug. 10. Metromile is a digital insurance platform and pay-per-mile auto insurer.
The filing states:
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.
“There were no realized gains or losses recognized during the three months and six months ended June 30, 2021,” the filing details. “As of June 30, 2021, the carrying value of the company’s bitcoin digital assets held was $0.9 million, which reflects cumulative impairments of $0.1 million. The fair market value of bitcoin held as of June 30, 2021 was $0.9 million.”
Metromile announced in May that “it will soon allow policyholders the option to pay for insurance and receive payment for eligible and approved insured claims in bitcoin or dollars.” Metromile aims be the first insurance company to both accept premiums and pay claims in cryptocurrency.
In its Q1 2021 letter to shareholders, the company said:
As the adoption of cryptocurrency grows rapidly worldwide, it is becoming clear that the decentralization of finance has the potential to shift consumer behavior and financial infrastructure … We believe that allowing cryptocurrency payment is fully aligned with our commitment to innovation, equitability, and promoting financial resilience.
The auto insurer joins a growing list of companies that have purchased bitcoin for their corporate treasuries, including Michael Saylor’s Microstrategy, Elon Musk’s Tesla, and Jack Dorsey’s Square.
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