US insurance giant Lemonade has attempted to diversify its investment portfolio with crypto assets, following a popular trend that is currently happening in the market. The move was indicated by a recent regulatory filing.
The company made the bulk of its purchases during the first nine months of the year when the firm acquired a total of $1 million in digital assets composed solely of the leading coin (Bitcoin). Lemonade reported the purchase in an S-4 form that US publicly traded companies file with the Securities and Exchange Commission (SEC).
In their statement, Lemonade said, “The Company currently accounts for these digital assets as indefinite-lived intangible assets in accordance with ASC 350, Intangibles-Goodwill and Other.”
“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 re-measured on the consolidated balance sheets at cost, net of any impairment losses incurred since acquisition,.”
The insurance company has claimed that no noticable gains or losses were made in those nine months, which ended on September 30, 2021. As of that day, the fair market value of the purchased crypto is $1.2 million, indicating a 20% increase on the investment’s initial value.
Lemonade is a public benefit corporation that is organised 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. The company also owns an offshoot in Israel that provides technology and research and development to other entities that are part of the group.
The latest development by Lemonade symbolises the popularity of diversifying business portfolios with crypto. This is a trend that is gaining popularity among smaller businesses that wish to join the trend started by large companies such as Tesla and MicroStrategy.
