Should You Buy This Bitcoin-Focused Fintech Stock?

Mogo (TSX:MOGO)(NASDAQ:MOGO) is a Vancouver-based financial technology company. Its shares have climbed nearly 110% in 2021 as of late afternoon trading on March 31. The stock is up over 600% from the prior year.

One of the key drivers for Mogo has been the historic bull run for bitcoin. Mogo was wise to bet on bitcoin and the crypto space in the late 2010s. Now, larger firms have conceded and are jumping to accept bitcoin into the mainstream. PayPal (NASDAQ:PYPL) recently adopted bitcoin on its platform.

On March 29, Mogo announced the first bitcoin cashback mortgage. It stipulates that members can now earn up to $3,100 in bitcoin cashback awards on a new mortgage or renewal. Young investors have been drawn to bitcoin and the crypto space. This move has the potential to attract more young home buyers to use Mogo’s services going forward. Mogo bitcoin accounts jumped 94% year-over-year at the end of 2020. It also launched a bitcoin rewards program in 2020, enabling active members to receive bitcoin rewards based on account activation, funding, and improving their credit score.

The company unveiled its fourth-quarter and full-year 2020 results on March 23. Net member additions climbed over 50% year-over-year in Q4 2020. Mogo is projecting a continued increase in member additions for 2021, as well as accelerated growth in subscription and services revenue.

Shares of Mogo are still trading at the higher end of its 52-week range. Mogo’s long-term prospects are worth getting excited about. Investors should consider buying the dip as we move into April.