In another example of a business that seeks to diversify its portfolio with crypto assets, US insurance company Lemonade has purchased bitcoin (BTC) for its balance sheet, as indicated by a recent regulatory filing.
During the first nine months of this year, the firm acquired a total of USD 1m in digital assets comprised solely of bitcoin. Lemonade reported the purchase in an S-4 form that US publicly traded companies file with the Securities and Exchange Commission (SEC).
“The Company currently accounts for these digital assets as indefinite-lived intangible assets in accordance with ASC 350, Intangibles-Goodwill and Other,” Lemonade said in the statement.
“The Company has ownership of and control over the purchased bitcoin asset and uses third-party custodial services to secure it. The digital assets are initially recorded at cost and are subsequently remeasured on the consolidated balance sheets at cost, net of any impairment losses incurred since acquisition,” it stated.
The insurance business said that there were no realized gains or losses recognized during the nine months ended on September 30, 2021. As of that day, the fair market value of the purchased crypto is USD 1.2m, indicating a 20% increase on the investment’s initial value.
Lemonade is a public benefit corporation organized under Delaware law. In addition to its activities in the US market, the company owns a number of subsidiary companies in support of its European operations in The Netherlands, as well as an offshoot in Israel that provides technology and research and development to other entities that are part of the group.
The latest development further signals that investing company assets in bitcoin and other cryptocurrencies is gaining popularity among smaller businesses that wish to join the trend started by large companies such as Tesla and MicroStrategy.
At 10:48 UTC, BTC is trading at USD 48,266. It’s up 2% in a day and down 4.7% in a week.
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