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Bitcoin: Financial giant Stone Ridge buys BTC worth $115 million

  • Stone Ridge Holdings Group (SRHG) has acquired 10,000 Bitcoins (BTC) as part of its new treasury reserve strategy.
  • SRHG decided to invest in Bitcoin due to the “uncontrolled printing of paper money”.

Stone Ridge Holdings Group (SRHG), an institutional asset management giant for financial advisors, institutions and insurance companies worth over $10 billion, announced yesterday that it has acquired 10,000 Bitcoin (BTC), equivalent to over $100 million, as part of its Treasury Reserve Strategy. SRHG made this public in a press release and stated that the purchase of Bitcoin was executed through its digital asset subsidiary New York Digital Investment Group LLC (NYDIG) and is held in its custody.

This continues the trend that began a few weeks ago by MicroStrategy that listed companies are adopting Bitcoin as their reserve currency. Like MicroStrategy and most recently Square, SRHG and NYDIG founder Ross Stevens emphasized this as an important step in the strategic development of his companies. He also claimed that more and more companies will take a pro-Bitcoin stance.

Like Michael J. Saylor, CEO of MicroStrategy, and Jack Dorsey, CEO of Square, Stevens pointed to the “uncontrolled printing of paper money” as a major reason for the move.

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. From an investment perspective, we’ve long viewed Bitcoin as superior to cash.

And now with unchecked – and unbacked – global paper money printing and real yields increasingly negative, SRHG’s more than 10,000 BTC are the principal component of our treasury reserve strategy. NYDIG’s corporate treasury solutions will be invaluable to other companies as they follow suit adopting the Bitcoin Standard for part or most of their treasury strategy. As the Fed’s balance sheet has increased $3 trillion since the beginning of 2019, the U.S. dollar has depreciated 70% against BTC.

NYDIG experiences quadrupling of institutional Bitcoin investors

Stone Ridge Holdings Group is not new to the segment of large crypto assets. In September this year, Chris Larsen of Ripple Inc. reported that he has one of his XRP wallets at SRHG. The company also received the U.S. BitLicense and the NYDFS Limited Purpose Trust Charter.

In addition to announcing the purchase of 10,000 Bitcoin (BTC), NYDIG also announced that it has raised $50 million in growth equity funding. Investors include financial services companies in commercial banking, insurance, investment banking and asset management. According to the press release, the financing comes in the midst of a quadrupling of NYDIG clients this year.

NYDIG offers institutional companies, investment advisors and high net worth individuals “a complete range of investment, brokerage, treasury and technology solutions for Bitcoin. In addition, NYDIG also works with banks and philanthropic organizations to provide their clients and donors with their core competencies in custody, execution, financing and AML/KYC. NYDIG’s current custody, asset management and funding balances exceed USD 1 billion in total.

As CNF reported, some experts believe that the current trend, pioneered by MicroStrategy and Square, could quickly turn into a domino effect. More and more companies could buy Bitcoin in light of current monetary policies, putting massive buying pressure on the Bitcoin price.

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About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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