2020-12-11 18:06 |
The 169-year old mutual insurer, MassMutual, purchased $100 million in Bitcoin for its general investment fund. This bitcoin investment is part of the company's broad strategy to take advantage of new opportunities that give it “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”
Massachusetts Mutual Life Insurance Co. is the latest mainstream firm to jump on the Bitcoin bandwagon, with its BTC investment representing 0.04% of the general investment account of about $235 billion.
“We see this initial investment as a first step, and like any investment, may explore future opportunities,” said spokeswoman Chelsea Haraty.
Analyst Mati Greenspan called this “one small step for an insurance company and a giant leap for digital assets.”
A HUGE DealThe company also announced a $5 million minority equity stake in New York-based fund management company NYDIG, a Stone Ridge subsidiary that provides cryptocurrency services to institutions.
As we reported, the institutional manager bought 10k BTC in October as its “primary treasury reserve asset.”
NYIDG has more than $2.3 billion in bitcoin and other crypto assets under management and will now provide custody services to MassMutual’s Bitcoin too. Ross Stevens, the founder and executive chairman of NYDIG told, Wall Street Journal,
“Other return-hungry insurance companies have also bought bitcoin for their general accounts through his firm. Interest rates that are hovering near zero and a depreciating dollar have made bitcoin appear more attractive.”
MassMutual is only one of many institutions who have filled / are filling their 9-figure bids. Most of them just don't go public.
But sure the chart says we are going back to 12k. /s
— Qiao Wang (@QwQiao) December 10, 2020
The insurance behemoth, which has been around since 1851, has joined MicroStrategy and Square's ranks that poured money into the world’s largest cryptocurrency amidst its growing institutional adoption.
Earlier this month, Bitcoin made an all-time high and is currently on a pullback, trading under $18,000, after the 100% run-up in 4Q20. Mike Novogratz, the founder of Galaxy Digital, commented,
“This might be the most important BTC news of 2020. An insurance company buys bitcoin for its general account. This needs fed approval. It’s a HUGE deal.”
The post MassMutual Invests 0M In Bitcoin; ‘Other Return-Hungry Insurance Companies’ Buying BTC: NYDIG Chairman first appeared on BitcoinExchangeGuide.Similar to Notcoin - Blum - Airdrops In 2024
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