Bitcoin, the world’s first-ever decentralized cryptocurrency continues to attract the attention of major financial firms from across the entire world as another financial institution has shown interest in the top-ranked cryptocurrency. A 169-Year-Old Insurance Company has reportedly made a massive investment in the world’s largest cryptocurrency by market cap. It is the latest investment made by a financial institution in Bitcoin.
MassMutual Becomes The Latest To Invest In Bitcoin
Following the major financial firms including the business intelligence firm MicroStrategy and the American financial services company Square, the 169-year-old Massachusetts Mutual Life Insurance Company has purchased $100 million worth of Bitcoin. With this huge investment, the insurance company has become the latest to invest in Bitcoin and has joined the list of other public companies that have invested in the leading digital currency.
The Chief Executive Officer (CEO) and Chief Technical Officer (CTO) of the San Francisco-based firm River Financial Alexander Leishman appeared on Twitter and shared his view regarding this investment. Commenting on this purchase of Bitcoin, he said that the investing of this massive insurance company into Bitcoin is huge news for the top-ranked digital currency. He even called it “biggest stamps of approval”. MassMutual bought this amount of BTC from its general account. As he stated in his tweet:
“This is massive news for Bitcoin. An insurance company buying Bitcoin from its general account is one of the biggest stamps of approval possible. The funds in an insurance company’s general account are usually invested very conservatively, as these funds are used to pay policy holder claims.”
Adding more to his comments, he said, “by investing in Bitcoin, MassMutual has effectively signaled that Bitcoin is considered safe and liquid enough for the largest, most conservative institutions in the world to make an allocation.”
While making a guess about why the firm has taken this decision, he said that the company might have acknowledged that it is riskier to not hold Bitcoin rather than owning it.
NYDIG Facilitated This Purchase
As reported by the Wall Street Journal (WSJ) on the 11th of December, this purchase of Bitcoin made by MassMutual was facilitated by the New York-based financial services firm New York Digital Investment Group LLC (NYDIG).
In addition to purchasing $100 million worth of BTC, MassMutual also made an equity investment of $5 million in NYDIG as well.