Bitcoin firm NYDIG has raised $1 billion in a funding round hosted by WestCap. The funding round puts the firm's valuation at $7 billion. The capital will be used to develop new institutional Bitcoin products.
The New York-based Bitcoin company announced Tuesday that it completed a $1 billion funding round. The round was led by WestCap, 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. NYDIG is the cryptocurrency subsidiary of Stone Ridge, a fund with over $10 billion in assets under management.
The capital will be used to further develop NYDIG's institutional-grade Bitcoin platform using recent upgrades to the Bitcoin protocol with capabilities such as Bitcoin and Lightning payments, asset tokenization, and smart contracts.
“The prospects for both NYDIG and Bitcoin have never been more exciting,” said Robert Gutmann, co-founder and CEO of NYDIG. “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.”
The funding comes on the heels of a year of unprecedented growth for NYDIG, as the firm leads the way in expanding access to Bitcoin for millions of people. The launch of NYDIG's bank solutions business, announced in December 2020, generated a string of exciting partnerships with industry leaders Alkami, Allied Payment Network, CSI, FIS, Fiserv, Jack Henry, NCR, and Q2. NYDIG has also forged partnerships to power products from leading fintech companies including Upgrade’s Bitcoin Rewards Card, which now accounts for close to 10% of Upgrade’s new card issuance.
“We are leading the investment round in NYDIG because of a shared belief in the industry-reshaping power of Bitcoin and WestCap's conviction in the NYDIG team to continue to execute on the incredible opportunity in front of them,” said Scott Ganeles, Partner at WestCap. “NYDIG plays a unique role in the industry, empowering companies of all types to incorporate Bitcoin in a secure and compliant way. We are proud to partner with Robby and his outstanding NYDIG team as they forge new paths to accessibility and further accelerate Bitcoin adoption."
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.