MassMutual Insurance Company Purchases $100 Million worth of Bitcoin
American insurance firm Massachusetts Mutual Life Insurance (MassMutual) has revealed the purchase of $100 million worth of Bitcoin (BTC). According to reports from local media, MassMutual made the Bitcoin purchase via the New York Digital Investment Group (NYDIG). Besides, NYDIG agreed to sell a minority stake to MassMutual in a deal worth around $5 million.
NYDIG is a top Bitcoin financial services company and has over $2 billion digital assets in its custody. MassMutual is considered one of the US’s biggest financial services companies, with more than 5 million clients. The insurance firm has over $550 billion in assets and rakes in annual revenue of $30 billion.
This latest investment in Bitcoin is part of the insurance firm’s plans to diversify its portfolio. Speaking on the investment, Chief Investment Officer of MassMutual Tim Corbett revealed its position on digital assets. “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 policy owners’’.
NYDIG CEO Robert Gutmann also had similar sentiments and believes that this is a major milestone for Bitcoin. ‘’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’’.
Institutional Adoption of Bitcoin On the Rise
2020 will be remembered as the year in which institutional interest in Bitcoin reached record levels. The past few months have witnessed an increasing demand for Bitcoin by traditional finance firms. This drive has largely been as a result of the Covid-19 pandemic that crippled global economies. Investors have been quick to look for alternative ways to hedge against the resulting crises and have turned to BTC.
Bitcoin has been able to come out of the crisis in great shape culminating in a massive bullish run. The leading asset recently broke its all-time high price, and there are speculations that it could surpass the $20k mark. This latest investment by MassMutual bodes well for Bitcoin and indicates the overall optimism for the leading currency.