Grayscale’s Parent Company to Buy $250M Bitcoin via GBTC

Barry Silbert of Digital Currency Group is planning to buy $250 million Bitcoin using the company's cash balance. 

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Digital Currency Group (DCG), the parent company of Grayscale LLC, has invested $250 million in Bitcoin using Grayscale’s Bitcoin Trust shares. 

DCG Taps Grayscale’s GBTC Discount

In compliance with SEC laws, DCG filed form Rule 10b-18 to inform shareholders about their BTC investment decision. The firm will disclose the buy price and time of purchase after the trade, recorded in Forms 10-K and 10-Q filed quarterly and annually.

The press release noted: 

“The actual timing, amount, and value of share purchases will depend entirely upon a number of factors, including the levels of cash available, price, and prevailing market conditions.”

The group has joined MicroStrategy, Tesla, Square, and others in adding Bitcoin to its balance sheet.

Currently, GBTC shares are trading at a discount of 3.22% on the market. It is possible that instead of issuing new shares at net asset value (NAV), DCG may buy GBTC from regulated brokerages at a discount.

Founded by Barry Silbert in 2015, DCG is the parent company of Genesis, Grayscale Investments, CoinDesk, Foundry, and Luno, making him one of the most successful venture capitalists in the space. 

The group has kickstarted 160 companies in the space at the ground level. These startups have raised a total of $1.1 billion from other investors. 

Disclosure: The author held Bitcoin at the time of press. 

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