$100 Million Worth of Bitcoin Bought By US Giant MassMutual Insurance Company
Founded in 1851, The Massachusetts Mutual Life Insurance Company is a US-based mutual firm with over five million clients. The Springfield, Massachusetts-headquartered giant is the latest traditional financial company that has allocated sizeable portions in the primary cryptocurrency.
- The Wall Street Journal reported earlier today that the insurance company had purchased $100 million in bitcoin for its general investment account.
- MassMutual employed the services of the New York-based fund manager NYDIG. Additionally, the insurance company acquired a $5 million minority equity stake in NYDIG.
- The report indicated that the BTC purchase is a part of MassMutual’s strategy to “take advantage of new opportunities while continuing to diversify its portfolio. The company also noted that having an exposure to Bitcoin will give it “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”
- NYDIG founder and executive chairman Ross Stevens said that other insurance companies have also expressed interest in buying bitcoin, while a few have already done so through his firm.
- The interest in BTC from companies outside the cryptocurrency industry has skyrocketed in 2020 and especially in the past several months. Prior to MassMutual, companies like the NASDAQ-listed MicroStrategy and Jack Dorsey’s Square also bought millions of dollars worth of bitcoin.
- Somewhat unsurprisingly, the growing demand for the primary cryptocurrency from similar companies, and celebrated investors like Paul Tudor Jones III and Stan Druckenmiller, has impacted BTC’s price. The asset has almost doubled in value since early October.
