NYDIG Bets Big on Bitcoin – $720 Million Raised for its Bitcoin Fund

NYDIG, the digital assets-focused subsidiary of financial services firm Stone Ridge, has raised approximately $720 million for its Institutional Bitcoin Fund. 

According to a Form D filing made with the SEC, around 59 investors contributed more than $12 million on average to the raise. The filing however revealed that the SEC had not “necessarily” validated the accuracy and completeness of the filing. 

NYDIG revealed in a press release following the filing that its Bitcoin balances have hit new a all-time high during Q3. Its holdings of Bitcoin grew “almost 100% year over year,” while revenue is up 130% through Q2. 

The press release also announced a management shakeup at the company. NYDIG has promoted Tejas Shah and Nate Conrad to new roles of CEO and President respectively. The duo were previously NYDIG’s Global Head of Institutional Finance and Global Head of Payments, respectively. 

The new officers are to lead the company in building on its current momentum with a focus on accelerating investment in crypto mining, custodial services, and Bitcoin Lightning Network integration. The release said: 

“Building on this momentum, Shah and Conrad will focus on accelerating NYDIG’s investment in its industry-leading Mining Solutions franchise serving the largest North American miners and in its platform technology business, helping banks and non-bank enterprises utilize the Lightning Network for next-generation wallets and global payments.”

The departing CEO, Robert Gutmann, and outgoing president, Yan Zhao, will remain at Stone Ridge Holdings Group, the parent company of NYDIG.

NYDIG has been championing mainstream Bitcoin adoption 

NYDIG, which describes itself as a Bitcoin company, has been one of the biggest champions of Bitcoin adoption by mainstream financial players. According to a Reuters report, NYDIG serves as the provider of institutional-grade Bitcoin custodial and fund management services to several banks that offer crypto investment to their clients including JP Morgan, Wells Fargo, and U.S. Bancorp. 

Thanks to its other partnerships and funding rounds, NYDIG has become one of the biggest crypto custodians holding over $1 billion in crypto for its clients. The company reached a valuation of $1 billion last December. 

Back in March, NYDIG saw its filing for a spot-settled Bitcoin exchange-traded fund (ETF) rejected by the SEC. The SEC has continued to refuse to approve a spot-settled Bitcoin ETF to be listed on regulated exchanges citing a lack of maturity of the crypto market.