$100M worth of BTC was recently purchased by the giant US Insurance company, MassMutual Insurance with an investment account of $225 billion so let’s read more in today’s Bitcoin news.
Founded back in 1851, The Massachusetts Mutual Life Insurance Company is a US-based insurance company that has more than 5 million clients. The Springfield, Massachusetts-based company is the biggest traditional finance company which allocated sizeable portions in the main crypto asset. The Wall Street Journal reported that the company purchased $100m worth of BTC for its general investment account.
MassMutual employed the services of the New York-based fund manager NYDIG and the company also acquired $5 million minority equity stake in the company. The reports showed that the latest BTC purchase is a part of the MassMutual strategy to “take advantage of new opportunities while continuing to diversify its portfolio.” Also, the company noted that by getting exposed to BTC, they will have meaningful exposure to a growing economic aspect of the digital world.
NYDIG founder and executive chairman Ross Stevens said that the insurance companies expressed more interest in buying BTC while others have already done it via his company. The interest in BTC from companies that are outside of the crypto industry, skyrocketed in 2020, especially over these past few months. Before MassMutual, companies like NASDAQ-listed Microstrategy and Square by Jack Dorsey purchased millions of dollars worth of BTC. The business company is based in Eastern US and it shocked the world once it invested $250 million from its balance sheet into BTC. This marked the first time a US company purchased BTC directly with cash from its balance sheet for investment purposes. However, in the past, the company chief executive Micahel Saylor was critical of BTC online.
The company purchased BTC anyway and argued that it is a better alternative than holding cash because of the vast amount of inflation and currency devaluation that is happening in the world. the company doubled down and purchased $175 million worth of BTC in September and another $500 million a week later.
While it doesn’t come as a surprise, the growing demand for the main cryptocurrency from similar companies and investors like Paul Tudor Jones has impacted the price of the benchmark cryptocurrency. The asset doubled in value since early October.
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