228 Interactions, 26 today
So far, Digital Currency Group has bought GBTC shares worth a total of $194 million.
Grayscale Investments’ parent company, Digital Currency Group, is now allowed to buy up to $750 million in shares of Grayscale Bitcoin Trust.
The company announced Monday that DCG increased its prior authorization to buy up to $250 million worth of GBTC shares by an extra $500 million.
The share purchasing authorisation does not obligate DCG to buy a certain number of shares in any given timeframe, and it can be extended, changed, or terminated at any time, according to DCG. Actual transactions will be determined by a variety of considerations, including available cash as well as price and business conditions, according to the company.
DCG reported that as of Friday, the company had acquired a total of $193.5 million in GBTC shares. DCG intends to finance the transactions with cash and to render them at management’s discretion in accordance with Securities Exchange Act Rule 10b-18, according to the group.
The announcement comes only a few months after DCG revealed its intention to buy up to $250 million in GBTC stock in March. The move coincided with GBTC’s uncertain market dynamics and intentions to recruit talent in the exchange-traded fund sector, indicating the firm’s future diversification.
GBTC, which was established in 2013 as the Bitcoin Investment Trust, is the world’s largest Bitcoin (BTC) fund, allowing investors to gain exposure to Bitcoin through a publicly traded private trust. As of Friday, GBTC’s assets under management totalled more than $36 billion, while Grayscale’s overall AUM stood at $46.7 billion. Grayscale’s gross AUM surpassed $50 billion in mid-April, as Bitcoin reached all-time highs of $64,000.