Bitcoin-Focused NYDIG Raises $1B to Accelerate ‘Bitcoin For All’ Mission: Company Valued at $7B

Bitcoins on keyboard with screen in the background displaying rising trend of its value.
SKapl / Getty Images

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.

See: Bitcoin’s Highs and Lows — And More From Cryptocurrency’s Wild 2021
Find: Bitcoin Fear and Greed Index: Should Crypto Investors Pay Attention?

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.

Building Wealth

Related: What Is Bitcoin Mining and How Does It Work?

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.

Learn: Majority of Bitcoin Owners Started Investing in the Past Year, Grayscale Study Finds
Explore: Self-Proclaimed Bitcoin Inventor Ordered to Pay $100 Million in IP Fraud Case

Building Wealth

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.

More From GOBankingRates

Share this article:

About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

Best Bank Accounts of August 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.