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MassMutual invests $100M in Bitcoin

  • Insurance giant MassMutual has invested $100M into Bitcoin
  • The purchase was done through NYDIG, of which they bought a 5% stake in
  • They've joined a number of corporations in this novel "invest in BTC" trend

MassMutual

Massachusetts Mutual Insurance Co. has joined other institutional players and corporations by investing $100,000,000 from their general investment account into Bitcoin. At the current price of BTC, this amounts to just under 5,500 BTC. Their general investment account has a net asset value of $235 billion, making their Bitcoin allocation about 0.04%.

Their purchase was done through NYDIG, a fund which specialises in Bitcoin and cryptocurrencies. MassMutual also purchased a 5% stake in the fund.

Bitcoin onboarding Corporations

Since the pandemic announcement in March, investors and corporations alike have been worrying about global monetary inflation. Rightly so given the amount of new cash supply that entered the markets. Traditionally, investors flocked to the yellow stone: Gold, at times of trouble. Today, unprecedented amounts of capital is flowing what people dub “the digital gold”, Bitcoin.

Microstrategy and Square are the two most well-known companies having invested portions of their treasuries into Bitcoin with $425M and $50M respectively. Microstrategy is even looking to raise capital through debt to purchase an additional $400M of Bitcoin.

Guggenheim, a global investment and advisory firm, filed with the SEC to be able to invest $500M into Bitcoin through Grayscale’s Bitcoin Trust (GBTC).

Risk

For years, it’s been perceived as a risk to park capital in Bitcoin or any other cryptocurrency. The tide seems to be shifting however, the risk has turned into not being invested in Bitcoin. That is trend particularly being seen amongst funds, underperformance by not being invested in Bitcoin is no longer perceived as normal.

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