Insurer MassMutual scoops up $100 million worth of Bitcoin, and billionaire Mike Novogratz noted it as the most important news in crypto this year
MassMutualis the latest financial institution to invest in Bitcoin, buying $100 million worth of the digital token.
- The company also acquired a 5% stake in crypto startup, NYDIG.
- Billionaire Mike Novogratz highlighted the insurer's Bitcoin purchase as the most important news in the crypto space in 2020, and called for regulatory approval.
- The investment represents 0.04% of MassMutual's $235 billion general investment account.
Massachusetts Mutual Life
The insurer also invested $5 million in an equity stake in New York Digital Investments Group, which calls itself a financial services firm "dedicated to Bitcoin."
Robert Gutmann, the co-founder and CEO of NYDIG, said MassMutual's purchase of the digital coin is an incredible moment in the history of both Bitcoin and the insurance industry.
The insurance company has been in existence for about 169 years, and its latest move underlines how more traditional institutions are transitioning to mainstream adoption of digital assets.
Famed investor Mike Novogratz called it the "most important" news in the crypto space this year. "An insurance company buys bitcoin for its general account," he tweeted Thursday. "This needs fed approval. It's a HUGE deal," he said, calling for more US regulation in digital assets.
MassMutual said its decision to buy Bitcoin, which represents 0.04% of its $235 billion general investment account, was made to benefit from new opportunities while remaining diversified, according to the Wall Street Journal.
The price of Bitcoin has surged 177% year-to-date to $19,857 this year, but is currently not having a good week since it fell almost 9% since Monday below $18,000.
Business intelligence group MicroStrategy has also expanded its investment in Bitcoin, and said this week it plans to raise $400 million to buy even more. The firm holds about 40,284 bitcoins as of December 4, according to a filing with the Securities and Exchange Commission.
"A break into new territory above $20,000 is more likely, but a move below $16,000 would be a massive test of the Bitcoin buzz that saw it hit new highs," Craig Erlam, a senior market analyst at OANDA said about the price of Bitcoin. "It should be a fascinating end to the year."
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