U.S. insurance giant MassMutual buys $100 million worth of bitcoin

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Author Amy Liu

According to the “Wall Street Journal” report, MassMutual, an insurance company based in Massachusetts, has purchased $100 million worth of Bitcoin for its general investment account.

The purchase was completed through the New York Digital Investment Group (NYDIG). MassMutual also acquired a $5 million equity stake in NYDIG, which holds $2.3 billion in cryptocurrency.

Founded in 1851, MassMutual is an American common life insurance company with 5 million customers and manages more than $235 billion in insurance accounts.

This marks the further momentum of Bitcoin’s development, and Bitcoin prices surged this fall. The price of a single Bitcoin reached a peak of US$19,835 in late November, surpassing the highest point in 2017. The current trading price is about US$18,000, which is a 150% year-to-date increase.

This investment is part of MassMutual’s strategy, which aims to seize new opportunities while maintaining diversification.

This acquisition coincides with the first adoption of Bitcoin by major institutional participants and a longer investment period in cryptocurrency.

In September of this year, business intelligence company MicroStrategy purchased more than $425 million in Bitcoin as a reserve asset. Earlier this week, the company announced that it would invest proceeds from the US$400 million securities offering in Bitcoin.