Crypto investment firm NYDIG raised additional $ 100 million in growth capital earlier this week. MassMutual, Stone Ridge Holdings, New York Life and Liberty Mutual Insurance participated as strategic partners in the new financing round. This follows that of the investment firm In early March, $ 200 million was injected.
In the previous funding round, NYDIG CEO Robert Gutmann stated that the additional funds would be used to develop “Bitcoin-related strategic initiatives in investment management, insurance, banking, clean energy and philanthropy.” With the latest funding and strategic adjustments, Gutmann promised an “explosion of innovation in Bitcoin products and services”.
How potential inflation drove NYDIG to growth
Ross Stevens, CEO of Stone Ridge and Executive Chairman of NYDIG, continued, “Fiat depreciation inflates fiat premiums while the purchasing power of claims collapses. We see a brighter future for the billions who depend on the insurance industry every year. “In simpler terms, high inflation undermines the current value of future fixed income payments – which is an obvious disadvantage for insurance companies. With Bitcoin over Fiat, insurers can indirectly hedge against inflation.
Growing institutional demand for cryptocurrencies has resulted in NYDIG having nearly $ 6 billion in assets under management. The company has partnered with Morgan Stanley’s private wealth management division to offer Bitcoin investments to wealthy clients.
So did the New York-based company announced Mike Sapnar, CEO of the major insurance company TransRe, would join the company as global leader for insurance solutions and help the company pave the way for “bitcoin-driven innovation” in the property and casualty industry.
“With Mike Sapnar a long-time trusted partner, and now with Starr, Liberty Mutual, New York Life and MassMutual as shareholders of NYDIG, we will work tirelessly to bring new Bitcoin-denominated products to global policyholders.” Stevens said.
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