Institutional bitcoin firm NYDIG raises $1bn at $7bn valuation

New York-based bitcoin firm NYDIG has raised $1bn in a growth equity funding round

Bitcoin and data illustration                                 
The funding round, which marks NYDIG’s third of the year, was led by London-based equity investment firm WestCap - Photo: Shutterstock
                                

New York-based bitcoin firm NYDIG has raised $1bn (£0.75bn) in a growth equity funding round at a $7bn valuation, the company confirmed on Tuesday.

The round, which marks NYDIG’s third funding round of the year, was led by London-based equity investment firm WestCap, with participation from Bessemer Venture Partners and FinTech Collective as well as existing investors Affirm, FIS, Fiserv, MassMutual, Morgan Stanley and New York Life.

NYDIG, which offers institutional bitcoin trading and is a subsidiary of Stone Ridge, will use the fresh capital toward building out its institutional-grade bitcoin platform and expanding its team internationally.

A series of investments

Back in March, NYDIG announced it had raised $200m from a series of big-ticket investors including Morgan Stanley, New York Life and MassMutual. 

One month later, it raised $100m from a variety of insurance investment firms to help build a suite of bitcoin-related products for the insurance industry.

MassMutual has participated in all of NYDIG's funding rounds throughout the year as the two companies continue to build their long-standing partnership. Last December, MassMutual purchased $100m worth of bitcoin for its investment fund with the help of NYDIG, and also acquired a $5m stake in the firm, according to the Wall Street JournalMassMutual told the Wall Street Journal  that the move was a "meaningful" way to gain exposure in the digital world.

Robert Gutmann, co-founder and CEO of NYDIG said the prospects for both NYDIG and Bitcoin have "never been more exciting."

He added: "Our roster of partnerships and strategic investors lays the foundation for NYDIG to become the leading provider of bitcoin solutions for businesses in any industry, and this new equity capital will further accelerate progress toward making this exciting network accessible – and useful – to all."

Scott Ganeles, partner at WestCap added: "NYDIG plays a unique role in the industry, empowering companies of all types to incorporate bitcoin in a secure and compliant way. We are proud to partner with Robert and his outstanding NYDIG team as they forge new paths to accessibility and further accelerate bitcoin adoption." 

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