Digital insurer Metromile sues with $ 1 million bitcoin purchase

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San Francisco-based tech company Metromile used 10% of the funds it said would be allocated to crypto to buy Bitcoin.

According to an August 10 filing from the United States Securities and Exchange Commission, or SEC, Metromile announced that it bought $ 1 million in Bitcoin (BTC) in June. However, the company recorded a loss of $ 100,000 on the original crypto purchase, holding around $ 900,000 in Bitcoin as of June 30, or 25.6 BTC at the time.

Metromiles’ second quarter 2021 financial report shows that the company had $ 202.6 million in cash and cash equivalents as of June 30, which means its Bitcoin investment was roughly 0.5% of available funds. Some experts recommend allocating 1% to 3% of net worth to crypto.

The SEC filing follows the company’s announcement in May of its intention to allocate $ 10 million to Bitcoin in the second quarter of 2021. At the time, Metromile said it would allow its policyholders to offer à la carte automobile insurance to pay for its services and receive compensation for Bitcoin claims.

Related: MassMutual Bitcoin Purchase Proves Demand For Crypto Is On The Rise, Says JPMorgan

In Q2 2021, Metromile announced that its in-force policy count was roughly stable from Q1 due to unexpected regulatory delays across the industry. However, business insurance revenues increased by more than 22% compared to the same period last year.

Metromile shares traded under the Nasdaq MILE ticker fell sharply on Monday, having remained above $ 7.00 since May. The price has fallen about 25% in the past two days, from $ 6.97 to $ 5.24 at the time of publication, causing its market cap to now stand at $ 660 million.

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