A Securities and Exchange Commission (SEC) filing has revealed a massive new seed round by New York Digital Investment Group (NYDIG). Since its creation in 2017, the platform has offered Bitcoin (BTC) related services to institutional investors.
A new cash flow for one of the largest bitcoin holders
Despite the downward trend in the market, investments continue to flow. Last week, a file published by the Securities and Exchange Commission (DRY) revealed the sum raised by the company New York Digital Investment Group (NYDIG).
A total of 59 investors took part in this funding round, for an overall amount approaching the $720 million. The SEC document states that the information in its document has not yet been verified. The money raised will be invested in an investment fund dedicated to Bitcoin.
Remember that the NYDIG group specializes in asset management solutions related to king of cryptocurrency : Between May and June 2020, the company raised $330 million in two separate funding rounds. Thus, the fund managed by NYDIG became one of the biggest in the world to be tied to BTC.
In December 2021, after raising $1 billion, the company’s valuation was estimated at $7 billion.
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A balance sheet that defies the economic situation
While the whole world has its eyes riveted on a potential recession, the New York firm, formerly headed by Robert Gutmann, is doing remarkably well.
According to a press release issued by NYDIG, the company’s revenue increased by 130% since October 2021. During the same period, its number of bitcoins under management has doubled despite the fall in prices. Ross Stevensfounder of the company, defends its results through good risk management:
” Even during crypto’s late 2021 highs, our risk management kept us totally out of DeFi, centralized platforms, and unsecured lending markets. »
In parallel with these positive results, the group is witnessing organizational changes: the former CEO Robert Gutmann leaves his place to Tejas Shahwhile President Yan Zhao is replaced by Nate Conrad.
These structural changes leave room to new aspirations. According to the group’s new CEO, the company is now focusing on developing new payment methods:
“ We look forward to bringing a new generation of wallet and payment solutions – faster, cheaper, more secure – to our growing enterprise technology customer base. »
Consequently, the major changes that are taking place within the NYDIG group will make it possible to increase the democratization of Bitcoin among institutions in the years to come.
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Source: SEC, Press Release
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Timothy Bourbotte
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