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.”
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.
Digital Currency Group just announced that they will be buying shares of GBTC in the open market.
Discounted bitcoin being gobbled up.
— Pomp 🌪 (@APompliano) March 10, 2021
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.