Massachusetts Mutual Life Insurance Co, MassMutual, has become one of the latest institutional investors scrambling for the digital gold – Bitcoin. The company made a purchase of $100 million in Bitcoin, another confirmation of mainstream acceptance for Bitcoin.
The newly acquired digital assets will form part of the company’s general investment fund. It is worth noting that although the investment is only a tiny fraction (just 0.04%) of the insurance company’s general portfolio, it significant further momentum for bitcoin. MassMutual’s general investment account totaled nearly $235 billion as of September 30, and a $100 million investment could be viewed as only a first step.
The bitcoin purchase was fulfilled through a New York-based fund management company called NYDIG. MassMutual has purchased a $5 million minority equity stake in NYDIG, a subsidiary of Stone Ridge. Meanwhile, NYDIG has about $2.3 billion bitcoin and other digital assets under its management.
MassMutual was founded in 1851 and is undoubtedly one of the largest companies to invest in digital assets. MicroStrategy and Square have also diversified their portfolio to include Bitcoin. The insurance company noted that its bitcoin investment was based on a broad strategy to explore new opportunities.
Founder and executive chairman of NYDIG, Ross Stevens, pointed out that some other insurance companies are already stocking their general accounts with bitcoin through his firm.