MassMutual, a Massachusetts-based U.S insurance company, has become the latest conventional institution to participate in Bitcoin purchases. According to a report today, the insurance company purchased $100 million worth of bitcoin. The purchase was accomplished by a New York-based fund management company named NYDIG.
MassMutual states that the move provides significant exposure to a developing economic aspect of its growing digital financial world. Moreover, MassMutual elucidates that this was a strategic investment to expansion while taking advantage of new opportunities. Founded in 1851, MassMutual is one of the oldest insurance firms in the U.S. It possesses above five million clients and $235 billion in assets. Moreover, the company hires above 10,000 workers globally and has several well-known investment subsidiaries like Coastal Wealth and Barings.
MassMutual acquires a $5M Minority Equity Stake in NYDIG.
Apart from including $100 million worth of bitcoin to its extensive investment account, MassMutual also got a $5 million minority equity stake in NYDIG. Therefore, describing another bet on the prospect of the digital assets landscape. Bitcoin’s purchase will designate 0.04% of the general investment account of approximately $235 billion as of Sept. 30.
However, with its double investment in NYDIG, MassMutual is further excited to welcome the infrastructure powering institutional adoption. NYDIG has been straightforward in its courting of the institutional class. Recently, the firm appointed crypto banker Patrick Sells to manage its crypto-services outreach purposes. It usually raises tens of millions of dollars for crypto funds. This includes a $100 million bitcoin fund recorded over Thanksgiving.
The investment in Bitcoin from companies outside the cryptocurrency industry has phenomenally increased in 2020, particularly in recent months. Preceding MassMutual, companies like the NASDAQ-listed MicroStrategy and Jack Dorsey’s Square also purchased bitcoins worth millions. Moreover, the rising demand for the primary cryptocurrency from various institutions and famous investors such as Paul Tudor Jones III and Stan Druckenmiller has extensively impacted BTC’s price. The asset has almost multiplied in value since early October.
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