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Bitcoin Firm NYDIG Raises $100 Million From Insurance Companies | CoinCodex

source-logo  coincodex.com 09 April 2021 13:12, UTC

NYDIG raises $100 million from P&C insurance companies

  • Bitcoin services firm NYDIG has raised $100 million in growth capital from Liberty Mutual Insurance, Starr Insurance and other insurance companies. The participants in the round were primarily insurance companies focused on property and casualty (P&C) insurance.
  • NYDIG appears to be planning a Bitcoin-powered offering for insurance providers. However, the company didn’t provide any details about their plans in its press release.
  • Alongside the fresh $100 million investment, Mike Sapnar, the CEO of reinsurer TransRe, is joining NYDIG to serve as the company’s Global Head Insurance Solutions. 
  • NYDIG executive chairman Ross Stevens commented on the benefits that Bitcoin can bring to the insurance industry:
  • "Fiat depreciation causes inflation in fiat premiums, while collapsing the purchasing power of claims. We see a brighter bitcoin-powered future for the billions who depend on the insurance industry every year."
  • NYDIG is a company that provides Bitcoin services tailor-made for institutional investors, banks and cryptocurrency businesses. This includes cryptocurrency custody (safe storage), trade execution, Bitcoin lending and borrowing, and managing Bitcoin donations. The company is the Bitcoin-focused subsidiary of alternative asset manager Stone Ridge Asset Management.
  • The company doesn’t seem to have any trouble raising capital, as it also announced a $200 million round in March which included investors such as Morgan Stanley, MassMutual and Soros Fund Management.
  • In the 2020-2021 cryptocurrency bull run, institutional investors have managed to take Bitcoin to new all-time highs. Bitcoin’s current ATH is just below $62,000, and it was reached on March 14. The coin is up more than 700% on the year.

coincodex.com