Chainalysis plans to dive into Bitcoin, buying some via the brokerage services of New York Digital Investment Group (NYDG). The company is known for its analysis of transactions on the blockchain. Its investigations into cybercrime and the information it provides in its reports, gives hackers and their accomplices in the cryptosphere a hard time.
Chainalysis and Bitcoin: first cryptocurrency purchase for blockchain analytics firm
Chainalysis said in an Oct. 19, 2021, statement that the company would expand its partnership with New York Digital Investment Group to buy Bitcoin. The amount of this future acquisition was not disclosed. Chainalysis cited “strong confidence in Bitcoin” and NYDG’s expertise in digital assets as reasons for the purchase.
Chainalysis CEO Michael Gronager said the acquisition is the company’s first cryptocurrency purchase. He further hinted that it would invest in more:
“This is Chainalysis’ first cryptocurrency acquisition, and we will continue to look for other digital assets as potential future investments.”
This announcement by Chainalysis came amid a bullish rally that has seen Bitcoin reach a new ATH around $67,000. Bitcoin is trading at $61,991 at the time of this writing.
Chainalysis and cybercrime: tracking hackers and their accomplices in the cryptosphere
Chainalysis is a blockchain analytics company whose data was particularly exploited in 2021 with the intensification of ransomware attacks, the ransom of which was paid in cryptocurrencies.
The company announced in September 2021 that it had investigated the money laundering activities of the Russian company Suex OTC. Its investigations revealed that much of the funds came from “illicit and high-risk sources” and that “tens of millions” of cryptocurrency payments came from addresses linked to cybercrime. The U.S. Treasury Department said it would impose sanctions on Suex OTC for giving hackers access to cryptocurrencies obtained from ransomware attacks.
Chainalysis had raised $100 million in June 2021 in a Series E round, bringing its valuation to $4.2 billion.
Chainalysis thus wants to follow in the footsteps of MicroStrategy and Tesla by adding Bitcoins to its balance sheet. The strategy has proven to be very lucrative for Elon Musk’s company, which has made $1 billion in profit on its Bitcoins purchased earlier in 2021.