Nasdaq-listed insurer Metromile plans $10M Bitcoin buy

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Nasdaq-listed insurer Metromile plans $10M Bitcoin buy

Metromile, Inc., a digital insurer headquartered in San Francisco, is making Bitcoin (BTC) a core a part of its enterprise operations, providing ad



Metromile, Inc., a digital insurer headquartered in San Francisco, is making Bitcoin (BTC) a core a part of its enterprise operations, providing additional proof of rising mainstream adoption of digital belongings. 

The corporate introduced Thursday that it’ll quickly give policyholders the choice to pay for insurance coverage and obtain fee on eligible insurance coverage claims in BTC or {dollars}. That makes Metromile the primary insurance coverage firm to each settle for premiums and pay insurance coverage claims in cryptocurrency.

Equally as notable, the corporate stated it should allocate $10 million in the direction of Bitcoin within the second quarter. Though it didn’t specify an actual date, a $10 million buy equates to roughly 175.four BTC at present worth ranges.

The corporate stated it believes that accepting crypto funds “will assist its dedication to fairer insurance coverage and promote monetary resilience for policyholders as cryptocurrency turns into mainstream and a extra significant slice of shoppers’ belongings.”

Dan Preston, Metromile’s CEO, additional defined his firm’s rationale:

“Supporting decentralized finance and including bitcoin as a brand new fee possibility is the subsequent logical step for our digital insurance coverage platform and end-to-end AI claims automation. The result’s fairer insurance coverage for all.”

Metromile is a pay-per-mile auto insurer that calculates premium funds and protection primarily based on miles pushed versus approximations. The corporate claims that its insurance coverage protection produces common financial savings of 47% per yr.

The corporate held its fourth-quarter earnings name on Mar. 30, the place it reported a large enhance in insurance policies in drive. Insurance coverage income was down barely in contrast with 2019, which was a giant yr by way of development.

Metromile’s share worth, which trades below the Nasdaq ticker image MILE, closed down 2.1% at $8.81 on Wednesday. At present values, the corporate has a complete market capitalization of $1.11 billion.