NYDIG Raises $720M for Institutional Bitcoin Fund

Despite bearish macro trends, investment management firm NYDIG says it has raised nearly $720 million for its Institutional Bitcoin Fund.

A total of 59 investors contributed to the increase, a Securities and Exchange Commission (SEC) filing from September 29 showed, although the regulator may not have reviewed the document, which could mean the increase is not over yet.

In December, the bitcoin-focused financial services firm completed a $1 billion funding round led by WestCap. Other participants included Morgan Stanley, Bessemer Venture Partners and MassMutual.

NYDIG has withstood multiple SEC rejections of its proposal to list and trade spot bitcoin exchange-traded funds. Nevertheless, NYDIG, born in 2016, continues its mission to “make Bitcoin accessible to everyone” through products such as bitcoin accounts, rewards and loyalty programs.

Earlier this year, it launched a benefits program that allows employees of participating companies to allocate a portion of their paychecks to bitcoin.

NYDIG fundraiser brings new CEO

NYDIG’s latest fundraising effort comes amid a reshuffle of senior management. On Monday, the group announced the departure of CEO Robert Gutmann and President Yan Zhao.

Both will continue to work at the firm’s parent company Stone Ridge Holdings, which they co-founded with Ross Stevens in 2012.

NYDIG appointed global trading head Tejas Shah to the position of managing director. Nate Conrad, former head of global payments, was appointed to the position of president.

Shah and Conrad will focus on accelerating investment in NYDIG’s mining solutions franchise and increasing institutional bitcoin adoption via the Lightning Network Layer-2 scaling project.

All things considered, NYDIG appears healthy in a turbulent time for the digital assets industry. NYDIG’s bitcoin balance hit an all-time high in the third quarter, up nearly 100% year-over-year, according to a statement released Monday. Revenue increased 130% through the second quarter, it added.

“When markets crumble, character emerges. A flight to quality by the most risk-aware institutional investors has relentlessly driven bitcoin and earnings to NYDIG over the past 12 months,” Stevens wrote in a statement.

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