Digital Currency Group, Grayscale Investments' parent company, has been authorized for the purchase of Grayscale Bitcoin Trust shares worth $1 billion, according to Yahoo Finance. Previous authorization of Digital Currency Group has been staying at $750 million.
With the approval of an additional $250 million, the companies will be able to significantly increase their position in the trust in addition to the previously purchased $388 million GBTC shares. In order to make purchases, DCG will use cash and proceed with the orders on the open market.
The upcoming deal is being arranged under the Securities Exchange Act of 1934 (the "Exchange Act") since the two companies are tied together and unauthorized purchases of the company's trust shares will be considered a conflict of interest.
The purchase authorization is a right but not an obligation for DCG to purchase any additional shares at any time. After receiving a "yes" from the SEC, the company is increasing the available purchasing threshold that it can use in the future. The timing and the size of the purchase will be determined by the company in accordance with market conditions.
Information about purchases of the trust's shares will be available in the trust's reports to the Securities and Exchange Commission. It will include the volume of the purchase, timing and additional details available to regulators and holders.
Digital Currency Group, CEO Barry Silbert, was founded back in 2015 and is now one of the most active digital assets industry beneficiaries, remaining one of the most active investors in the field. The company today is the backer of over 175 blockchain-related companies in over 35 countries.
While having a major investment portfolio that included directly bought cryptocurrencies, it is also the parent company of Genesis, Grayscale Investments, Coindesk, Foundry and other industry-leading entities.