Cryptocurrency News

Institutional-Grade Bitcoin Company NYDIG Raises $720 Million for Its BTC Fund

By October 4, 2022 No Comments
Bitcoin (BTC) and fiat currency cover image

Key takeaways:

  • NYDIG has raised $720 million from 59 investors for its Bitcoin fund
  • In addition, the leading Bitcoin investment company has appointed a new CEO and president
  • Under new leadership, NYDIG will focus on Bitcoin’s Lightning Network and continue pursuing its “Bitcoin for All” mission

SEC filing shows NYDIG raised capital for the Bitcoin Fund from 59 investors

NYDIG, a leading company providing a full suite of Bitcoin services and products for institutional investors, has filed documentation with the US Securities and Exchange Commission (SEC) that shows the firm raised $720 million for its Bitcoin Fund.

According to the filing, 59 investors participated in the capital raise for the NYDIG Institutional Bitcoin Fund.

NYDIG launched its Bitcoin Fund in 2018 and continued expanding its BTC portfolio in the years since. The latest capital raise is by far the biggest in the fund’s four-year history.

Last year, NYDIG completed a $1 billion financing round at a $7 billion valuation. The round was led by WestCap and saw participation from prominent financial institutions such as Morgan Stanley.

NYDIG’s balance sheet is “the strongest it’s ever been,” despite the bear market

In addition to the massive influx of new capital into the NYDIG-managed BTC fund, the company shared another interesting piece of news on Monday. According to a press release, Tehaj Shas assumed the role of the CEO, while Nate Conrad Became the new president. In addition to leadership change, the company revealed that its balance sheet is “the strongest it’s ever been.”

NYDIG Founder and Executive Chairman Ross Stevens credited positive business metrics to “risk management discipline.” He said:

“Even during the height of the crypto frenzy in H2 2021, our risk management discipline kept us entirely away from DeFi, centralized lending platforms, and the uncollateralized lending market. The firm’s balance sheet is the strongest it’s ever been, and we’re now investing aggressively into a capital-starved market.”

NYDIG will focus on the Lightning Network under new leadership

Shah, who had worked for nearly 20 years as a partner at Goldman Sachs, said the company would continue expanding Bitcoin solutions as a part of its “Bitcoin for All” mission. The new CEO added that an increased level of focus would be put on the Lighting Network, the leading Bitcoin Layer 2 scaling solution. “

“Now it’s time for Lightning. We are excited to deliver next-generation wallet and payment solutions – faster, cheaper, safer – to our expanding set of enterprise technology clients,” Shah explained.