NYDIG has Raised $720 Million for its Institutional Bitcoin Fund

As of Oct. 3, New York-based digital investment group NYDIG said it has raised $720 million for its institutional bitcoin fund, according to filings with the U.S. Securities and Exchange Commission.

Only 59 investors contributed, with each contributing more than $12 million to the financing on average, suggesting these were wealthy individuals or companies.

The number is the largest since the peak of institutional investors in or around December 2020, when they bought about $1 billion worth of bitcoin each week.

According to the press release, NYDIG’s bitcoin balances “increased nearly 100% year over year, and revenue rose 130% in the second quarter."

NYDIG stated that “While Bitcoin continues to trade lower during 2022, the company holds more Bitcoin than ever before.”

The filing emphasizes that the SEC has not necessarily reviewed the information in the filing while determining its accuracy and completeness.

NYDIG, in particular, is promoting cooperation among institutional investors. According to the firm's forecast, the firm expects its assets under management (AUM) for institutional investors to exceed $25 billion, as many corporate buyers turn to the firm for their bitcoin investment needs.

It is reported that NYDIG is a subsidiary of Stone Ride Holdings and has a long-term cooperative relationship with traditional financial institutions.

According to a September SEC filing, Stone Ridge said it expects to liquidate the bitcoin futures fund next month, on Oct. 21, and from Nov. 3, shares in the fund will not be available for purchase. The advisor will reduce the Fund's holdings to cash in preparation for the liquidation date. Proceeds from the liquidation of the fund are expected to be distributed to shareholders in the form of cash.

The liquidation proceeds are expected to be distributed promptly after the liquidation date to fully redeem each shareholder's shares of the fund.