Posted 1 year ago | by @devadmin
Mass Mutual an insurance giant, has entered into the Bitcoin market as a means for a “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”
The Massachusetts-based insurance firm has announced that it has purchased $100 million in Bitcoin for its general investment account. Mass Mutual oversees insurance accounts up to $235 billion.
According to a report from The Wall Street Journal, the insurance company purchased 5,470 Bitcoin around the current price of $18,279 — through its New York-based fund management company NYDIG. MassMutual has also reportedly bought a $5 million equity stake in the firm, which holds $2.3 billion in crypto according to WSJ. The New York-based NYDIG, offers cryptocurrency custody and trading services.
Cointelegraph reports that the investment is part of a strategy of a “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.” The company further expressed.
“Our $100 million investment in Bitcoin through NYDIG will represent .04 percent – or less than one tenth of one percent – of our total GIA.”
Ross Stevens executive chairman of NYDIG and CEO of its parent company Stone Ridge commented on the investment.
“MassMutual has been a phenomenal company to work with across Stone Ridge’s broad investment platform,” Ross Stevens, founder and executive chairman of NYDIG and CEO of parent company Stone Ridge told WSJ. “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.”
MassMutual is one of the oldest American mutual life insurance firms founded in 1851 averaging at least 5 million clients.
In the past 6 months, numerous institution players have entered the Bitcoin space as a growing list of other Wall Street veterans and institutional firms is becoming interested in the number one cryptocurrency comparing it to “digital gold,” to hedge against a devaluing dollar. Bitcoin has continued to see rapid growth this year and more recently made a new all-time high of $19,860 on some exchanges according to on-chain metrics, Bitboy Crypto reported.
Prior to its all-time-high BTC was struggling to break above $19,000, after a sell-off over the Thanksgiving holiday. Bitcoin’s all-time-high has followed a slight pullback which we seem to be recovering from now.
This year alone, since Bitcoin’s yearly low in March, Bitcoin has rallied more than 400%. This marks another milestone in Bitcoin’s impressive 2020 run which saw a dip of as much as 50% in March. Max Keiser has predicted that Bitcoin could surge as high as $1 million dollars due to a supply shock triggered by institutional investors.
Bitcoin is currently trading at [FIAT: $18,209.30] DOWN -1.5% in the last 24 hours according to Coingecko at the time of this report.