Cryptocurrencies

Bitcoin Investment Strategies Firm NYDIG Raises $200 Million

With the cryptocurrency market continuing to grow, another FinTech that specializes in the space is seeing a major investment. This week, NYDIG announced that it had raised $200 million in investments from strategic partners. Described as a “growth capital round,” the raise was led by Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments. Returning investors Bessemer Venture Partners and FinTech Collective also participated in the funding round. Elsewhere, the firm has announced that New York Life Chairman and CEO Ted Mathas has joined the NYDIG Board of Directors.

According to their website, NYDIG helps institutions, banks, corporations, and private clients invest in Bitcoin. Additionally, the company reveals that life, annuity, and property & casualty insurers have more than $1 billion in direct and indirect Bitcoin exposure facilitated through the firm. Meanwhile, in total, NYDIG has more than $3 billion in assets under custody.

In a press release announcing the funding, NYDIG co-founder and CEO Robert Gutmann said of the round’s participants, “The firms participating in this round are more than investors – they are partners, each well known to us for years. NYDIG will be working with these firms on Bitcoin-related strategic initiatives spanning investment management, insurance, banking, clean energy, and philanthropy. These partnerships leave no doubt that institutional adoption of Bitcoin has arrived and, further, that NYDIG is the partner of choice for serious financial services firms with the highest fiduciary and diligence standards.”

Gutmann continued with a prediction, noting, “In the months and quarters ahead, look out for an explosion of innovation in Bitcoin products and services delivered by NYDIG, in partnership with our new investors.” Meanwhile, the company’s founder and executive chairman Ross Stevens stated simply, “I am thrilled by what this group of incredible investors will mean for NYDIG, but especially for Bitcoin.”

NYDIG’s funding round is the latest indication that Bitcoin investment is growing increasingly mainstream. In recent months, companies such as Tesla have announced Bitcoin buys while platforms, such as PayPal, have made it easier for consumers to purchase the digital asset. Also notable is that, after a brief pullback, Bitcoin is once again trading above $50,000 (currently at $56,700) as it eyes yet another new record.

Given the big names that will now be partnered with NYDIG, this announcement could indeed prove to be a big deal. While crypto enthusiasts are sure to have mixed feelings about institutional money flowing into Bitcoin, the fact is that such a development can go a long way in helping the asset reach its true potential. For those reasons, it seems that the recent gains Bitcoin has made are likely only the beginning.

Other Articles by Jonathan Dyer