This article comes from, the original author: Paul Vigna
Odaily Planet Daily Translator | Thinking of Silver
Original title: “Another Mainstream Acceptance: Massachusetts Life Buys $100 Million Bitcoin”
Massachusetts Mutual Life Insurance Co. purchased $100 million in Bitcoin for its general investment account, which is the latest sign of mainstream acceptance of this emerging digital currency .
This investment is a negligible investment for the Springfield, Massachusetts-based insurance company-as of September 30, the company’s general investment accounts totaled close to $235 billion. But this means further development momentum for Bitcoin. Bitcoin soared this fall and reached a peak of $19,835 at the end of November, surpassing the historical high of 2017. The current transaction price of Bitcoin is around $18,000, which has risen by 150% this year.
MassMutual purchased these bitcoins through a New York fund management company called NYDIG. NYDIG manages approximately $2.3 billion in Bitcoin and other cryptocurrencies. MassMutual also acquired a minority stake in NYDIG for US$5 million. NYDIG’s predecessor was New York Digital Investment Group (New York Digital Investment Group).
The insurance company, which was founded in 1851, stated that Bitcoin investment is based on a broad strategy of maintaining diversification while taking advantage of new opportunities to “enable us to gain access to a growing economic sector in an increasingly digital world. Moderate but meaningful exposure.”
Ross Stevens, the founder and executive chairman of NYDIG, said that other insurance companies that are hungry for returns also use his company to buy bitcoin for general accounts. He added that interest rates currently hovering near zero and the depreciating U.S. dollar make Bitcoin more attractive.
Bitcoin’s rise has attracted strong investors who flooded into the market’s best-performing assets and dumped those with poor yields. Also in attendance are billionaire investors such as Paul Tudor Jones and Stanley Druckenmiller, who have publicly disclosed bitcoin investments in recent months.
Payment company Square Inc. purchased $50 million in Bitcoin in October this year as its corporate capital. This investment accounts for 1% of the company’s total assets. In a statement, Square said: “Square believes that cryptocurr
ency is a means of economic empowerment and provides a way to participate in the global currency system, which is in line with the company’s mission.” Since 2018, Square has allowed its Cash App Of users buy and sell Bitcoin.
MicroStrategy Inc., a technology company, strongly supports Bitcoin, with an investment of approximately US$425 million this year. On December 11, MicroStrategy announced the completion of the issuance of convertible senior notes worth nearly 650 million U.S. dollars, aimed at buying more bitcoins. The company estimates that according to the fund reserve policy, the net proceeds of $634.9 million from the sale of these notes will be used to buy Bitcoin. As the buyers fully exercised their option to subscribe for up to US$100 million in senior convertible notes, the amount of this issuance increased to US$650 million from the previously announced US$550 m
illion. It stated that these notes will be issued to qualified institutions through private placement and will expire on December 5, 2025.
Despite the renewed interest in Bitcoin recently, Bitcoin is still a small market, which has also contributed to its worrying volatility. In March of this year, when the global market fell sharply, the price of Bitcoin fell to $3,867, a drop of more than 60% from the beginning of 2020. After Bitcoin surged in 2017, it also lost about 50% of its value in January 2018.
As of press time, OKEx quotation shows that BTC is currently trading at 18330.1 USDT, a 24-hour increase of 2.48%.
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