Digital Assets: NYDIG Builds On Solid Q3 With $720M Raise, And C-Suite Rejig

October 5, 2022 | Digital Assets, News
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NYDIG promoted executives Tejas Shah and Nate Conrad to the roles of CEO and President, respectively.

Bitcoin company NYDIG on Monday announced top-level changes, promoting executives Tejas Shah and Nate Conrad to the roles of CEO and President, respectively. Shah and Conrad were previously NYDIG’s Global Head of Institutional Finance and Global Head of Payments. Prior to joining NYDIG in 2020, Shah had a nearly 20-year career at Goldman Sachs where he was a partner. Conrad joined Stone Ridge in 2016 and NYDIG in 2020, after also beginning his career at Goldman Sachs.

Outgoing CEO Robert Gutmann and outgoing President Yan Zhao will remain at Stone Ridge Holdings Group, parent company of NYDIG, which they co-founded with Ross Stevens in 2012.

No reason was available for the top-level changes.

What bear market? NYDIG nabs $720M raise

In what appears to be an appropriately timed development, NYDIG also disclosed in a filing last week that it raised $720 million for its Institutional Bitcoin Fund from 59 unnamed investors who contributed an average of more than $12 million each to the raise.

The funding comes as NYDIG revealed its “bitcoin balances hit all-time highs in Q3, up almost 100% year-over-year, and revenue is up 130% through Q2, with another increase when the firm closes its books on Q3.”

Market views

“When markets crumble, character emerges. A flight to quality from the most risk-aware institutional investors has relentlessly driven bitcoin, and revenue, to NYDIG the last 12 months,” said Ross Stevens, Founder and Executive Chairman.

“Even during the height of the crypto frenzy in H2 2021, our risk management discipline kept us entirely away from DeFi, centralized lending platforms, and the uncollateralized lending market. The firm’s balance sheet is the strongest it’s ever been, and we’re now investing aggressively into a capital-starved market. Robby and Yan are delivering the business to Tejas and Nate in phenomenal shape” Stevens added.

Lightning Network: Facilitating access to non-state money

Interestingly, mention of the Lightning Network crops up several times in Monday’s release.

NYDIG said Shah and Conrad would focus on (inter alia) “helping banks and non-bank enterprises utilize the Lightning Network for next-generation wallets and global payments,” in the company’s platform technology business.

Stevens also said: “Financial gravity is operating. In Q3, the reality of fiat debasement overcame risk-off driven liquidity shocks, driving the dollar, yen, euro, and pound all down against bitcoin. Against this backdrop, Lighting Network growth is exponential, with access to about 100,000 people in August 2021 growing to more than 150 million today. NYDIG is privileged to play our part facilitating global access to non-state money, especially at this critical time.”

In context of its “best-in-class cold storage custody solution,” NYDIG said: “Now it’s time for Lightning. We are excited to deliver next-generation wallet and payment solutions – faster, cheaper, safer – to our expanding set of enterprise technology clients.”

Related Story: New $190M Bitcoin Fund Subscribed by 24 Unnamed Investors

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