2020 continues to be a great year for digital currency as Massachusetts Mutual Life Insurance Co. (MassMutual) announced its purchase of $100 million in Bitcoin (BTC) for its general investment account.
According to the report, MassMutual becomes one of the newest organizations to embrace Bitcoin, which has witnessed support from several top financial institutions, multinational organizations, and prominent individuals this year.
The report disclosed that MassMutual bought the $100 million in bitcoins with the aid of a New York-based fund management firm, NYDIG. Additionally, the Massachusetts-based life insurance firm also purchased a $5 million minority equity stake in NYDIG. Overall, NYDIG reportedly currently has $2.3 billion in various digital currencies under its management.
Addressing its decision to invest in crypto, the insurance company, founded in 1851, said it was a move to diversify as well as explore the new opportunities that crypto offers. The life insurance company said its decision to buy Bitcoin is “giving us measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”
Crypto Space Reaction To MassMutual Investment
MassMutual’s investment of $100 million might be deemed little when taking into account the fact it holds $239 billion in general investments. However, it is an eye-opener to the ongoing change in the general public’s view of cryptocurrency. Crypto is being seen less as a tool for money laundering by criminals and more of a legitimate investment opportunity.
The news of the insurance company’s investment has been received happily in the crypto space. Reacting to the announcement, the co-founder of Winklevoss Capital Management and the Gemini cryptocurrency exchange, Tyler Winklevoss, expressed his support for the move via his Twitter account. He tweeted, “And another domino falls on the yellow brick road to #Bitcoin being worth $500k per bitcoin. Who’s next?”
Also expressing his excitement with the insurance company’s decision to invest in Bitcoin, popular American entrepreneur Anthony Pompliano also tweeted in support of the move. “At some point it becomes too risky to have no exposure to Bitcoin. $235 billion insurance company is now in the game,” he said.
Meanwhile, in a series of tweets, Alexander Leishman, CEO and co-founder of River Financial, a Bitcoin-based financial institution, stated that the MassMutual investment was one of Bitcoin’s “biggest stamps of approval possible.”
According to him, “By investing in Bitcoin, MassMutual has effectively signaled that Bitcoin is considered safe and liquid enough for the largest, most conservative institutions in the world to make an allocation.”
1/ This is massive news for Bitcoin. An insurance company buying Bitcoin from its general account is one of the biggest stamps of approval possible. https://t.co/4A93QKaaT5
— Alexander Leishman 🇺🇸 (@Leishman) December 10, 2020
Also, Dan Tapiero expressed shock with the new development. He tweeted, “Now that’s shocking. It’s one thing for @michael_saylor to strap on almost a billion #bitcoin but a life insurance company?! Was just told today that institutions not interested in #btc…WRONG! Might be the biggest news of the year. Will wake people up.”
International Organizations Embracing Bitcoin
MassMutual’s investment comes on the heels of several other international firms investing a sizeable part of their assets in Bitcoin. Top on the list is renowned digital asset investment fund Grayscale with roughly $9.7 billion in crypto.
MicroStrategy is another firm that’s massively investing in Bitcoin. It recently purchased 16,796 Bitcoin (BTC) for $175 million, also taking into account it previously owned 21,454 BTC. The company recently announced it was planning on buying another $400 million in bitcoins.
Also, Twitter CEO Jack Dorsey’s Square recently acquired 4,709 bitcoins. Overall, the company has moved a full one percent of its assets into Bitcoin. According to Square’s chief financial officer, Amrita Ahuja, it was a move carried out due to the growing digital currency adoption. She said Bitcoin “has the potential to be a more ubiquitous currency in the future.”
As of press time, Bitcoin (BTC) is trading at $19,393.77. With a market cap of $360,184,029,007 and a 24-hour trading volume of $24,239,067,043.
For more current activities in the crypto space, check out the Altcoin Buzz YouTube channel.