Advertisement
AD

Main navigation

Digital Currency Group Plans to Put up to $750 Million into Shares of Grayscale Bitcoin Trust

Advertisement
Mon, 3/05/2021 - 12:43
Digital Currency Group Plans to Put up to $750 Million into Shares of Grayscale Bitcoin Trust
Cover image via stock.adobe.com
Read U.TODAY on
Google News

Barry Silbert's crypto venture capital behemoth Digital Currency Group is set to invest up to $750 million into the shares of Grayscale Bitcoin Trust, according to a May 3 press release.

Advertisement

In early March, DCG announced its initial plan to purchase $250 million worth of GBTC stock.

Grayscale's parent company is not obliged to actually buy any shares. The timing of purchases, if any, will depend on various factors such as the size of its cash pile and market conditions, the press release reads:

The share purchase authorization does not obligate DCG to acquire any specific number of shares in any period, and may be expanded, extended, modified, or discontinued at any time. 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.

Related
Grayscale Bitcoin Trust's Stockholder Not Happy About Persistent Discount

The negative premium continues to persist

While Grayscale remains mum about why it plans to make such a massive buyback, there is some speculation that it is likely related to the fact that GBTC shares have been trading at a negative premium for several months.

On April 22, the trust recorded a record 18.92 percent discount, as per data from YCharts. At press time, the premium stands at -9.99 percent.

296
Image by ycharts.com

As reported by U.Today, Grayscale also confirmed its intentions to convert the trust into an exchange-traded fund last month.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD