Bitcoin-Focused NYDIG Raises $1B to Accelerate ‘Bitcoin For All’ Mission: Company Valued at $7B
On Dec. 14, New York Digital Investment Group — or NYDIG, a financial company dedicated to Bitcoin — announced it had raised $1 billion to “bridge the gap between traditional finance and Bitcoin.” The move represents a continued show of investor interest in economic activity surrounding cryptocurrency.
NYDIG says its mission is “Bitcoin for all”: the company aims to build an inclusive financial system that makes Bitcoin a universal option for billions of people worldwide. “Bitcoin is a resource for human progress, and NYDIG is the gateway,” text on the company’s web page reads.
Per a press release, this most recent round of funding led by WestCap — along with participation from prior leads Bessemer Venture Partners and FinTech Collective, as well as strategic partners and existing investors Affirm, FIS, Fiserv, MassMutual, Morgan Stanley, and New York Life — values the company at more than $7 billion.
“This year has brought tremendous growth for us and we’re grateful for the continued support of our investors and partners. Our latest growth equity funding round will help advance our efforts in bridging the gap between traditional finance and #Bitcoin,” NYDIG tweeted.
The capital will be used to further develop NYDIG’s institutional-grade Bitcoin platform, particularly by integrating recent upgrades to the Bitcoin protocol with capabilities such as Bitcoin and Lightning payments, asset tokenization, and smart contracts, the company said in a statement.
“The prospects for both NYDIG and Bitcoin have never been more exciting,” Robert Gutmann, co-founder and CEO of NYDIG, said in the statement. “Our roster of partnerships and strategic investors lays the foundation for NYDIG to become the leading provider of Bitcoin solutions for businesses in any industry, and this new equity capital will further accelerate progress towards making this exciting network accessible — and useful — to all.”
As for WestCap, it said that they led the investment round in NYDIG because of a shared belief in the industry-reshaping power of Bitcoin.
“NYDIG plays a unique role in the industry, empowering companies of all types to incorporate Bitcoin in a secure and compliant way,” said Scott Ganeles, partner at WestCap, via press release.
NYDIG also said it will use the capital to further expand its team across the globe.
In October, U.S. Bank announced that its cryptocurrency custody services, in partnership with NYDIG, are now live and available to its Global Fund Services clients, as GOBankingRates previously reported.
And in March, NYDIG partnered with Morgan Stanley — the first U.S. bank to offer Bitcoin to its wealthier clients.
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