San Francisco based leading digital insurance platform and pay-per-mile auto insurer Metromile Inc, which purchased $1 million worth of bitcoin on 30th June, 2021, has  announced later in May that it would purchase additional $10 million for making insurance payouts easy in bitcoin in Q2 of this year.

The technology firm has already used 10% of its crypto funds to buy $1 million worth of bitcoin. According to SEC’s filling of 10th August Metromile reported, “During the three months and six months ended June 30, 2021, the Company recorded $0.1 million of impairment losses on bitcoin… 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 United States Securities and Exchange Commission filling further follows the firm stating it will allow its policyholders to pay for its services and receive compensation from claims in bitcoin. The policies in force of Q2 has been “roughly flat” compared to that of first quarter due to “industry-wide unexpected regulatory delays.” The company’s insurance revenue has increased more than 22% in Q2 than that of first quarter of 2021.

However, the Bitcoin payment solution would make Metromile the first insurance firm to accept both premiums and pay claims in bitcoin. CEO of Metromile, Dan Preston stated, “Metromile gives drivers control over how they want to pay for insurance. We started by giving drivers an opportunity to save 47% a year by paying per mile, and now we want to offer people the flexibility to pay and be paid how they want.”

As on Monday, the shares of Metromile stock trading under the Nasdaq ticker MILE dropped roughly 25% in the last 2 days from $6.97 to reach $5.24 at the time of publication, having remained above $7.00 since May. It now makes Metromile’s market capitalization $660 million.

Joyashree Dey

CBW - External Analyst

INDIA