The purchase was part of the company’s minority investment in NYDIG
MassMutual has made a major move into Bitcoin with the purchase of a minority stake in NYDIG, a ‘leading provider for institutional investment and technology solutions for Bitcoin’. As part of a $5 million equity investment into the firm, MassMutual also purchased approximately $100 million in Bitcoin. The purchase, facilitated by NYDIG has been designated for the insurer’s ‘general investment account’. According to NYDIG, its Bitcoin position is held in the firm’s ‘secure, audited, and insured custody platform.’
“The strategic equity investment of MassMutual underscores NYDIG’s role as the leading provider of Bitcoin solutions to institutions, banks, and private clients,” commented Robert Gutmann, co-founder and CEO of NYDIG. “It also accelerates our white-label business segment, which provides bespoke implementations of our core custody, execution, financing, and AML/KYC capabilities to a rapidly expanding group of large financial institutions.”
With respect to MassMutual’s purchase of Bitcoin, Gutmann added, “We are proud of this incredible moment in the history of both Bitcoin and the insurance industry. This reflects the expansion of Bitcoin to insurance company general investment accounts, as well as NYDIG’s unique ability to meet the complex needs of the most demanding institutional investors.”
Ross Stevens, founder and Executive Chairman of NYDIG and founder and CEO of Stone Ridge Holdings Group, NYDIG’s parent company, said, “MassMutual has been a phenomenal company to work with across Stone Ridge’s broad investment platform. Given their track record of innovation, there is nothing surprising to me about MassMutual leading their industry yet again by both seeing, and acting on, the long-term value of the Bitcoin monetary risk premium for their policyowners.”
Stevens continued, “Since 2012 at Stone Ridge, and since 2017 at NYDIG, we have been quietly building our portfolio of business arks ahead of the no-yield flood, which is now in the early innings of submerging the world. Bitcoin – asymptotically unprintable sound money with an uncorrelated risk premium – is a cornerstone of our practice. To help NYDIG support the next leg of Bitcoin’s journey, I could not have dreamed of a better company to work with than MassMutual. Their enduring focus on delivering safety, security, and responsible innovation to their policyowners and their families has long inspired all of us at Stone Ridge and NYDIG, and, I believe, now will inspire the broader Bitcoin community.”
Investment comes as Bitcoin continue to rises in recognition and value
MassMutual’s equity investment comes during a period of substantial rise in Bitcoin’s value and in growth for NYDIG. According to the firm, it now supervises over $2.3 billion of digital asset balances under custody – including for a growing list of leading insurance company general investment accounts.
Founded in 1851 in Springfield, MassMutual has shown a continual interest in innovating and investing in new technology as part of its mission of “…helping people secure their future and protect the ones they love.” In commenting on the insurer’s latest moves into cryptocurrency, Tim Corbett, Chief Investment Officer of MassMutual said, “We believe that having an equity stake in NYDIG as well as a Bitcoin position in our general investment account will help us deliver long-term value to our policyowners. We look forward to further exploring additional ways to work with NYDIG, consistent with our ongoing focus on innovation and diversification.”
With that said, on the heels of this investment, the company also announced this month its acquisition of the Fintech Platform Flourish.
