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Stone Ridge, a New York-based institutional asset management company, has become the latest company to describe Bitcoin as a “Primary Treasury Reserve Asset.”
Announcing this today, the company, worth $10 billion, noted that it holds 10,000 Bitcoin worth $115 million as a reserve asset.
The asset manager said it is non-wholly owned crypto subsidiary, NYDIG, would maintain custody of the Bitcoin. NYDIG was launched during the crypto rush of 2017 to cater to the needs of new breeds of institutional clients seeking to add crypto assets to their portfolio.
At the time, the crypto firm raised $50 million in an unannounced investment round. NYDIG used the capital to facilitate its Bitcoin custody services and to acquire the necessary New York state crypto licenses needed for its operation. NYDIG said it raised an additional $50 million last Friday in a growth equity round led by Fintech Collective, Bessemer Ventures, and Ribbit Capital. This brings the total funding to $100 million.
Although most of NYDIG’s clients are private, Stone Ridge’s 10,000 BTC is not the largest in its custody, the firm’s representative said.
Ripple Chairman Chris Larsen even revealed in a tweet last month that he had transferred some of its XRP holdings to NYDIG custody.
Not The First
Meanwhile, Stone Ridge is not the only institutional company to adopt Bitcoin as a reserve asset to hedge against fiat inflation following the COVID-19 induced economic crisis.
MicroStrategy, a U.S-based publicly-traded company, was the first to add Bitcoin as part of its “Primary Treasury Reserve Asset.” In August, the NASDAQ-listed company, valued at more than $1.2 billion, purchased 21,454 BTC, which were worth $250 million at the time.
After the first purchase, MicroStrategy bought an additional 16,796 BTC ($175 Million), bringing its total Bitcoin holdings to 38,250 BTC.
Twitter’s Jack Dorsey’s Square, Inc. (NYSE: SQ) quickly became the second publicly-traded company to name Bitcoin as a primary reserve asset. On October 8, Square disclosed that it purchased 4,709 bitcoins valued at $50 million at the time.