Another Traditional Financial Institution Bullish! Century-old American Insurance Company Announces $100 Million Bitcoin Purchase

Bitcoin has achieved another milestone in mass adoption and consensus on value. MassMutual Financial Group in the United States announced that it has purchased $100 million worth of Bitcoin for its general investment account through New York Digital Investment Group (NYDIG).

MassMutual

Established in 1851 with over a century of history, MassMutual, one of the large traditional financial institutions, has recently invested in Bitcoin. According to MassMutual's officialpress release, this investment was made through a subsidiary of asset management firm Stone Ridge, New York Digital Investment Group (NYDIG), to purchase Bitcoin, which will be custodied by NYDIG, accounting for 0.04% of MassMutual's total assets under management.

In addition, MassMutual also acquired a $5 million stake in NYDIG during the transaction. MassMutual stated that NYDIG is experiencing significant growth, currently managing over $2.3 billion in digital assets, including a growing number of general insurance accounts from insurance institutions. Tim Corbett, Chief Investment Officer of MassMutual, stated:

We believe that holding equity in NYDIG and Bitcoin in general insurance accounts will help us provide long-term value for policyholders. We look forward to further exploring other collaborations with NYDIG.

Robert Gutmann, Co-founder and CEO of NYDIG, commented:

MassMutual's strategic equity investment highlights our role as a Bitcoin solutions provider. We are proud of the incredible milestones Bitcoin and the insurance industry have achieved together, reflecting NYDIG's unique ability to meet the complex needs of institutional investors.

Market Unfazed by Bullish News

New York Digital Investment Group is an institutionally licensed investment services provider offering comprehensive custody, trading execution, and investment management for cryptocurrencies. It obtained the BitLicense from the New York Department of Financial Services in 2018, allowing it to provide cryptocurrency custody and trading services within the jurisdiction of New York State. Its parent company, Stone Ridge, is a $15 billion asset management firm managing over $10 billion in assets.

Despite recent positive news, including MicroStrategy's issuance of bonds to buy Bitcoin, a change of heart from Bridgewater Associates' founder, and endorsements from JPMorgan and BlackRock, Bitcoin has dropped below $19,000 and has even fallen below $18,000 in recent days.