Bitcoin trading and custody services provider NYDIG has acquired commercial lender Arctos Capital for an undisclosed sum.
San Francisco-based Arctos provides financing solutions to bitcoin mining businesses. It also manages a fund that offers accredited investors access to USD-denominated debt secured by bitcoin and a little direct exposure to bitcoin.
Founded in 2018, Arctos's offerings are focused on bitcoin miners across North America. "Over the coming months, as part of NYDIG, we will be deploying capital to support bitcoin miners across the U.S. and Canada," said Arctos's managing partner Trevor Smyth. "Our lending products will also provide investable credit solutions for banks and life insurance companies, which will help to bring in more low-cost capital for the industry."
NYDIG recently launched an insurance solutions business to create bitcoin-based products and services for the global insurance industry. NYDIG's clients and investors also include insurance companies, including MassMutual. Meanwhile, New York Life chairman and CEO Ted Mathas sits on NYDIG's board of directors.
Essentially, the Arctos acquisition will allow NYDIG to combine its "long-term, low-cost capital" with Arctos's market expertise to deliver expanded solutions to its clients, according to NYDIG's head of market solutions Tejas Shah.
Arctos is the second acquisition by NYDIG in recent months. Earlier this year, NYDIG, a spin-off of Stone Ridge Asset Management, acquired crypto research and analytics firm Digital Assets Data for an undisclosed sum.