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$115 Million in Bitcoin Was Acquired by an Asset Manager as its Primary Treasury Reserve Asset

Stone Ridge Asset Management, home to $13 billion in assets under management (AUM) has recently purchased $115 million in Bitcoin (BTC) and allowed its subsidiary, New York Digital Investment Group (NYDIG) to custody its Bitcoin.

According to the official announcement, Stone Ridge purchased 10,000 Bitcoin as part of its treasury reserve strategy, similar to MicroStrategy. Its subsidiary, NYDIG would be in custody of these Bitcoins. Ross Stevens, the founder of Stone Ridge said in a statement:

“We started NYDIG in 2017 because Bitcoin is an accelerant to the Stone Ridge mission of Financial Security for All. I view Bitcoin as a border-agnostic, uniting force for good. Bitcoin can propel global citizens that opt in towards a brighter, and fairer, financial future.”

Echoing MicroStrategy’s CEO, Michael J. Saylor, Stevens also said that the company has “long viewed Bitcoin as superior to cash.” CEO of NYDIG, Robert Gutmann said:

“We are proud to have facilitated one of the largest commitments of treasury assets to Bitcoin announced to date, and see demand for our full suite of corporate treasury and investment solutions accelerating.”

NYDIG raised $50 million in 2017 to build a custody solution to manage custom Bitcoin funds, and to acquire a BitLicense and a New York State limited-purpose trust charter to hold Bitcoin for investors.

MicroStrategy purchased a total of $425 million in Bitcoin last month, as part of its treasury reserve strategy as well. Saylor explained that the decision was part of the company’s two-pronged capital allocation approach. Saylor added:

“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.”

Less than a week ago, Square’s $50 million-dollar move on Bitcoin has pushed the fintech payment company’s stocks higher, enabling it to outperform PayPal shares. Following Square’s new purchase, Bitcoin bulls have speculated that it was only a matter of time before Square’s industry rival, PayPal, followed suit and directed its attention towards BTC. In June, there had been talks that the digital payments company was considering rolling out cryptocurrency sales services for its 305 million users.

NYDIG Expects to Hold $25 Billion In Bitcoin for Institutions by End of 2021

Ross Stevens, the founder and CEO of New York Digital Investment Group (NYDIG) has predicted that the firm could significantly increase the amount of Bitcoin it holds under management by the end of this year to $25 Billion in BTC.

Stevens said that at the MicroStrategy’s World 2021 Conference event where he revealed that while currently the NYDIG has $6 billion in Bitcoin assets under management, the amount could reach $25 billion by the end of 2021 because the company already has adequate institutional buy orders lined up to push its holdings to such levels.

Stevens had a conversation with MicroStrategy CEO, Michael Saylor, during the conference where he said:

“I believe that the most important decision that CEOs will make in the next ten years will be deciding to allocate to Bitcoin.”

Stevens disclosed that NYDIG has seen all customers continuing to build up their initial investments to date. He said:

“My partners bought more Bitcoin in 2020 than in 2013-2019 combined. As our fiat businesses continue to inflate and accelerate, I expect we will buy more bitcoin in the next two years.[…]We are capital allocators. If we didn’t believe we would make money off this, we wouldn’t invest a penny.”

Currently, NYDIG manages $6 billion in Bitcoin for its 280 institutional customers, with more than 96 more on the waiting list. Steven said that the company can onboard at least 75 clients a month.

Bitcoin the Next Big Treasure

In the past, Bitcoin’s immature financial ecosystem, legal ambiguities, and extreme volatility made it inappropriate for anyone but speculators. However, since falling from its initial peak seen in December 2017, the cryptocurrency’s financial infrastructure has significantly matured. A recent price spike witnessed in 2020 has seen a return of the volatility that has attracted a rising number of investors.

The COVID-19 pandemic has made an enormous impact. The response by central banks and sovereign treasuries has been worrisome to investors. As more dollars are printed by the Federal Reserve, talks of additional stimulus being injected into the US economy is on the rise and the threat of inflation looms. This explains the reasons why major companies with cash reserves are doubtful about the long-term stability of the US dollar and looking to a hedge to build their wealth and protect their assets. This apparently explains the increasing trend of public companies adding Bitcoin to their balance sheet. MicroStrategy started the trend and followed by Square Inc.

Why The U.S. SEC Should Approve Its First Bitcoin ETF

The entire Bitcoin and cryptocurrency ecosystem is changing as more people are becoming aware of the budding potential of the crypto space.

There have been hurdles in Bitcoin’s quest to go mainstream in the past year, but institutional investors that were once indecisive about owning the asset are now beginning to back the premier digital currency.

Beginning with the unrelenting embrace of Bitcoin by hedge funds such as Grayscale, other publicly listed companies also took up positions with the cryptocurrency. Among the corporations supporting Bitcoin are PayPal, MicroStrategy, Square, and Ruffer Investment Company, to name a few.

The support for BTC by these companies – either through direct purchase or by supporting its purchase on their platform as is the case of Paypal has arguably increased the publicity around the cryptocurrency. The mainstream media is gradually becoming more amused by the potentials of the coin, as its ongoing bullish run has steered its price down to a new all-time high (ATH) of $50,000.

Government Can Support Increased Corporate Participation Through ETF

The United States government through the Securities and Exchange Commission (SEC) has maintained more of a dual-faced regulatory approach when it comes to general Bitcoin and cryptocurrency oversight. While allowing the operations of some key crypto and blockchain-based companies, the agency has maintained an outright rebuff for specialized products including Bitcoin Exchange Traded Funds (ETF).

An Exchange Traded Fund is an investment product that trades on the stock exchange and follows the trading standards of a public bourse. With ETFs, conservative investors can gain exposure to Bitcoin, but under more structured regulatory provisions. This dispels the fear of financial insecurity that comes with having direct exposure to the asset.

Over time, however, the SEC has refused to grant approval for numerous applications that have filed for an ETF product in the United States. Bitwise, VanEck, SolidX, and other entities who have registered for Bitcoin ETFs in the past have been met with the shock of their proposals being rejected, with no hope in sight even in 2021.

Seeing the current trend in the crypto space with top US firms, the latest of which is electric vehicle maker Tesla Inc. who made a $1.5 billion purchase of Bitcoin, the time might be nigh for the SEC to reconsider its position on BTC ETFs. This move can be the last link in drawing more Wall Street investors into the Bitcoin space.

NYDIG In Line To Retest The SEC’s Resolve

Following the trend and yielding to market demands have prompted both Canadian and Australian regulators to approve their Bitcoin ETF products. NYDIG, Stone Ridge Asset Management’s Bitcoin spin-off firm, is, however, testing the resolve of the SEC with its latest filing for a Bitcoin ETF product.

Listing investment banking firm Morgan Stanley as the initial authorized participant in the ETF, NYDIG is hoping that 2021 will be the pivotal year where the US match up with its peers by allowing new Bitcoin investment solutions.

Bitcoin Mining Technology Luxor Completed $5M Series A Funding Led by NYDIG

Seattle-based cryptocurrency mining software technology company- Luxor announced Wednesday a Series A funding completed with a total value of $5 million.

It is reported that the financing was led by NYDIG, a company specialising in providing Bitcoin investment and technology solutions, and mining companies Blockware Solutions, Celsius Network, DPO, Navier, and others followed up.

According to the announcement, this financing expansion aims to open up crypto mining in North America. In addition to leading equity financing, NYDIG will also cooperate with Luxor on many mining-related companies and computing power-based products.

Luxor’s CEO and co-founder Nick Hansen believes that this strong cooperation will completely change the use, valuation, trading, and hedging methods of hashrate and provide miners with the best products and services. The function of hashrate generally measures the processing power of the Bitcoin network.

The co-founder and CEO of NYDIG, Robert Gutmann, stated that:

“We’re confident in Nick’s vision and his team’s ability to drive and expedite the hashrate migration to North America, and the development of instruments that can strengthen the Bitcoin ecosystem.”

The proprietary technology developed by Luxor has the potential to increase returns for miners. Luxor’s Switch software product is a profit-switching algorithm that maximises the rewards of computing power by switching between the blockchains and the venues.

Bitcoin miners are in pain due to the price crash cutting into their profit margins. Since the start of Elon’s tweets on May 12, the hash rate has dropped, and their miner wallet net flows have been increasingly turning negative.

To help miners increase their returns, Luxor provides a software solution called Switch that uses a profit conversion algorithm to maximise computing power rewards by converting blockchains and venues to obtain the highest revenue.

According to Cambridge Bitcoin Electricity Consumption Index, the rate of China’s dominance has dropped from 65% to 55% since April 2020, which indicates China’s dominance is weakening, while the United State’s dominance is increasing, accounting for 11% due to China’s authority strengthen and tighten legal restrictions on cryptocurrency mining activities.

As previously reported by Blockchain.News, Bitcoin miners from the Chinese regions of Inner Mongolia, Sichuan, and others are beginning to sell off their mining hardware to not step into the red line of the law.

Chainalysis Adds Bitcoin to Balance Sheet as BTC Soars Above $63,000

Blockchain and cryptocurrency data compliance platform Chainalysis has announced it is adding Bitcoin (BTC) to its balance sheet as the digital currency nears its All-Time High (ATH).

According to the company, the acquisition will be facilitated through the brokerage platform of its long-term industry partner, NYDIG, and the Bitcoin purchase marks the first time for the company to invest in cryptocurrencies.

The investment move is a way to resound an assurance into the broader digital currency ecosystem. It shows that Chainalysis now believes in the ecosystem that it is providing comprehensive compliance solutions.

“Chainalysis is laser-focused on its commitment to building trust in cryptocurrency as a digital asset, and we are thrilled to be adding Bitcoin to our corporate investment portfolio,” said Michael Gronager, co-founder and CEO at Chainalysis.

“With any financial transaction, a level of trust and transparency is necessary. Our longstanding relationship with NYDIG enabled us to invest confidently, knowing we were dealing with an industry leader. This is Chainalysis’ first acquisition of cryptocurrency, and we will continue to pursue other digital assets as potential future investments.”

The Chainalysis acquisition came when the first Bitcoin Futures ETF administered by ProShares went live on the New York Stock Exchange. The confluence of institutional activities surrounding the digital currency has pushed it close to its ATH of $64,863.10 attained earlier in April this year.

With the ProShares Bitcoin ETF product that tracks the coin’s futures market, more influx of corporate investments may flow in, pushing the coin’s price further to new highs. It is unclear why Chainalysis waited this long to make its first investment. However, earlier investors, including MicroStrategy, Tesla, and Square, have enough to gain with the growing price of Bitcoin.

Sustenance of this growth cycle can push the cryptocurrency’s price toward very ambitious price marks in the coming years, as predicted by many analysts.

New York’s Crypto Firm NYDIG Acquires UK’s Bitcoin Micropayment Firm Bottlepay for $300M

New York-based crypto company NYDIG (New York digital investment group) has acquired U.K. based micropayment service firm Bottlepay for an estimated amount of funds between $280 million and $300 million.

Founded in 2019, the British-based Bottlepay is a maker of global, real-time payment applications powered by the Lightning Network. Users can make micropayments of as little as a dollar in Bitcoin or other currencies, such as euros and pounds, instantly without transaction fees. Bottlepay app is available throughout Europe, and the U.K. and users send money as messages via some of the world’s largest social networks like Twitter, Reddit, and Discord.

Therefore, the acquisition will enable NYDIG to integrate Bottlepay’s Lightning Network infrastructure into its existing full-stack Bitcoin platform to facilitate more efficient and faster payments.

Bottlepay founder Pete Cheyne talked about the development and highlighted why NYDIG acquired Bottlepay.

“When we set out to build Bottlepay, we wanted to unlock the financial infrastructure of the future. We’re excited to be joining an industry leader like NYDIG who shares our vision for the future of money,”

Meanwhile, Robert Gutmann, co-founder and CEO of NYDIG, also talked about the regulatory credibility that the Bottlepay service built through its business service delivery.

“The Bottlepay team has built world-class infrastructure for Lightning and bitcoin payments, and they have done so with the same level of regulatory and compliance rigour that our customers expect from NYDIG today. NYDIG is on a mission to bring bitcoin to all, and this acquisition brings us one step closer to fulfilling that goal,” Gutmann said.

In February, NYDIG participated in Bottlepay’s $15.4 million seed funding round, a raise led by British billionaire investor Alan Howard and enabled the firm to get a valuation of $50 million in excess.

NYDIG Expanding Crypto Services

The Bottlepay’s acquisition comes amidst NYDIG continued accelerating its business expansion and franchises.

In April, NYDIG acquired Arctos Capital, a technology-driven commercial lender that provides financing solutions to Bitcoin holders, investors, and mining businesses.

In January, NYDIG acquired Digital Assets Data, a major data, research, and analytics firm building enterprise-grade software and data feeds. The acquisition added to NYDIG’s best-in-class platform for banks, hedge funds, high-net-worth investors, and institutions looking to unlock the full potential of Bitcoin as an asset class.

As recently reported by Blockchain.News in May, NYDIG partnered with fintech giant Fidelity National Information Services to enable U.S. banks to offer Bitcoin services to their customers in coming months. Banks which recently only announced plans to allow wealth management clients to be able to access the cryptocurrency, have now indicated their willingness to provide Bitcoin services to even retail customers.

NBA's Rockets Team up with NYDIG, to be Paid in Bitcoin

NBA team Houston Rockets announced that it will collaborate with the New York Digital Investment Group (NYDIG), a top player in the bitcoin arena. The NYDIG will become the exclusive partner with the Rockets across a range of cryptocurrency services.

This partnership aims to expand the Bitcoin ecosystem through visits, education programs, and community support programs; in doing so the initiative will provide NYDIG exposure across all of the team’s platforms.

Both parties agreed to use bitcoin as a form of payment for the team’s expenses and sponsorships; while the proceeds will be held on NYDIG’s secure, regulated, full-stack bitcoin platform. But the NBA team hasn’t disclosed what specific offerings will be provided as a product of the collaboration.

In addition, NYDIG will also become the first naming partner of the Houston Toyota Center Suite, and some of the high-level functions will be named “NYDIG’s Bitcoin Suite”. NYDIG will also obtain the baseline apron during the Rockets game.

NYDIG delivers Bitcoin products across industries, from banking and insurance to fintech and nonprofits.

Gretchen Sheirr, President of Business Operations from the Houston Rockets, said：

“Partnering with NYDIG allows us to leverage the growth of Bitcoin to provide creative rewards and payment options to our fanbase and associates.”

This partnership is another successful feat for Rockets boss and billionaire Tilman Fertitta, who last week sealed a deal with NYDIG to add Bitcoin rewards for his Landry’s restaurant chain, which launched a BTC payment option this year.

Trey Zeluff, director of digital-asset strategy at Fertitta Entertainment, expressed that the expansion of the collaboration between the Fertitta family and NYDIG to the Rockets was a very natural choice, stating that：

“The Rockets are a leading sports brand and NYDIG is the leader in bitcoin financial services. Together, we will deliver new opportunities for Rockets fans and the City of Houston to learn about and use bitcoin.”

Earlier this month, NYDIG acquired U.K.-based micropayment service firm Bottlepay for an estimated amount of funds between $280 million and $300 million.

This crypto partnership is the third for Rockets. The team previously partnered with bitcoin mining firm Bitmain in 2018, and in earlier 2021, signed a deal with Socios – a company that makes crypto token fan rewards.

The NBA is not a stranger to cryptocurrencies or NFTs. Before Fertitta, Mark Cuban’s Dallas Mavericks who in 2019, began accepting bitcoin and Dogecoin as a form of payment for merchandise and game tickets.

The league is also popular for its digital collectables or NFTs known as Top Shot, which fetched millions of dollars.

NYDIG Launches Bitcoin Savings Plan for Employees

NYDIG, a company specialising in providing Bitcoin investment and technology solutions, announced on Feb. 1 the launch of an employee bitcoin savings plan that allows employees to convert a portion of their salary into bitcoin.

NYDIG stated in the official announcement that employees of companies participating in the NYDIG Bitcoin Savings Program are free to choose what percentage of their wages to convert into Bitcoin (BTC), and the Bitcoin held by employees is traded or held without paying transaction or cold storage fees.

These bitcoins will be stored in NYDIG’s industry-leading 100% cold storage system – dubbed the safest way to hold bitcoins.

Billionaire Tilman Fertitta, who also sealed a deal with NYDIG to add Bitcoin rewards for his Landry’s restaurant chain, which launched a BTC payment option last year said:

“Offering cutting edge benefits, like a Bitcoin Savings Plan, helps ensure that we are appealing to the new generation entering the workforce and allows us to attract and retain some of the best talent in the industry.”

As reported by Blockchain.News on November 17, NBA team Houston Rockets announced that it will collaborate with the New York Digital Investment Group (NYDIG), a top player in the bitcoin arena. The NYDIG will become the exclusive partner with the Rockets across a range of cryptocurrency services.

Deloitte and NYDIG Forms Alliance to Popularize Bitcoin

Big 4 auditing firm Deloitte has formed a strategic alliance with NYDIG as both seek to make Bitcoin (BTC) a more accessible digital currency for all.

As announced by Deloitte, the alliance will make it easy for companies, irrespective of their sizes, to integrate Bitcoin services, riding on the infrastructural capabilities of NYDIG.

Companies that utilize the onboarding route this alliance will offer will largely be able to leverage the consulting and professional services being provided by Deloitte. The partnership will see NYDIG utilize “Deloitte’s blockchain and digital assets practise across multiple areas involving bitcoin products, such as banking, consumer loyalty, and rewards programs, employee benefits, and more.”

Deloitte is one of the biggest accounting firms with concerted efforts to drive Bitcoin and blockchain adoption across the board.

Despite the current bearish outlook of the digital currency ecosystem, there has been a growing popularity of cryptocurrencies, particularly Bitcoin. Alliances like this can bring more people to benefit from its decentralization power. According to Deloitte, the coalition will be the most active in cases where compliance is important regarding embracing digital currencies.

“We envision a world where traditional financial infrastructure works alongside digital asset infrastructure to deliver clients a best-in-class experience with the highest standards of regulatory compliance,” said Yan Zhao, President of NYDIG, adding that “We’ve already started the journey of bringing Bitcoin to all by embedding bitcoin wallets into existing user experiences, powering bitcoin rewards programs, and enabling bitcoin-secured lending.”

The number of businesses that accept cryptocurrencies is increasing by the day and digital currency holders arguably needed an environment to spend their acquired coins. The coming together of NYDIG and Deloitte solves this immediate challenge and will ultimately empower businesses to be a part of the evolution of the nascent virtual currency ecosystem.

NYDIG Partners with New York Yankees to Offer Bitcoin Savings Benefit

NYDIG, a regulated Bitcoin company, has entered into a multi-year partnership with the American professional baseball team, the New York Yankees to bring Bitcoin Savings Plan (BSP) to all employees of the organization.

Through the partnership, New York Yankees employees will be able to harness the opportunities inherent in the BSP as a workplace benefit that allows staff to convert a portion of their paycheck to Bitcoin via the NYDIG platform. The service offering is protected by strict regulatory standards and will serve as an easy way for subscribers to gain easy exposure to the digital currency ecosystem.

“For employees of the Yankees and beyond, the opportunity to allocate a small slice of their paycheck to a Bitcoin Savings Plan can be one of the most efficient ways to save bitcoin, and the dollar-cost averaging can smooth out the bumps along the way. We commend the Yankees for understanding the competitive opportunities and the value of providing bitcoin options for their organization,” said Kelly Brewster, chief marketing officer at NYDIG.

In its in-house research, NYDIG has discovered that employees are increasingly demanding products that will help them invest in Bitcoin. As its extension to the Yankees, subscribers will not be charged a penny in fees, even for the storage of their digital assets.

NYDIG is notably pushing forth the bars when it comes to offering related products to sports outfits and franchises. As reported earlier by Blockchain.News, NYDIG teamed also partnered with NBA team Houston Rockets, offering the organization’s employees a reliable avenue to get involved with crypto.

NYDIG is particularly driving partnerships amongst institutional investors. Based on its projections, the firm is expecting its Assets Under Management (AUM) for institutional investors to top $25 billion as many corporate buyers are beginning to turn to the firm for their BTC investment needs.