New York-based investment firm Stone Ridge buys 10,000 Bitcoin
The $10 billion investment management company Stone Ridge announced today that it has purchased more than 10,000 BTC, worth over $100 million at that time, as part of its treasury reserve strategy. Stone Ridge’s subsidiary, NYDIG, executed the purchase and currently holds custody of the funds. NYDIG is the same entity to which Ripple co-founder Chris Larsen had moved his XRP wallets to last month.
At the time of writing, BTC price was up by 0.91 percent in the last 30 minutes and was worth around $11,405. However, prices may shift later as seen last week after payments giant Square purchased 4,709 BTC worth about $50 million at that time.
The reason behind the purchase and investment is believed to be shaped by macro events. In fact, CEO of NYDIG, Robert Guttman said that current economic conditions and Covid-19 “has caused a lot of people to rethink their portfolio composition.” As a result, more institutional investors have begun participating in the market since March this year, he added.
NYDIG possesses the much-coveted BitLicense which allows it to convert dollars into crypto while the NYDIG Trust has a New York State limited purpose trust charter that allows it to buy and hold bitcoin.
Earlier, MicroStrategy had invested $425 million in bitcoin, while the Canadian digital asset manager 3iQ released $91.2 million in its Bitcoin Fund trading on the Toronto Stock Exchange. Recently, 3iQ had also listed its BTC funds on the Gibraltar exchange.