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Digital Currency Group Authorizes the Purchase of $1 Billion Worth of GBTC Shares

Summary:
Digital Currency Group, the organization behind the world’s largest cryptocurrency asset manager, has decided to enhance its Bitcoin position by authorizing the acquisition of billion more worth of shares of Grayscale’s Bitcoin Trust. The press release dated October 20th reads that Digital Currency Group has upped its authorization from 0 million to billion. This means the company will more than triple its current position, which, as of October 19th, 2021, stands at 8 million worth of shares of GBTC. The company plans to “use cash on hand” to fund the purchase and will make it on the open market, at management’s discretion, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. It’s worth noting, though, that the authorization doesn’t

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Digital Currency Group, the organization behind the world’s largest cryptocurrency asset manager, has decided to enhance its Bitcoin position by authorizing the acquisition of $1 billion more worth of shares of Grayscale’s Bitcoin Trust.

  • The press release dated October 20th reads that Digital Currency Group has upped its authorization from $750 million to $1 billion.
  • This means the company will more than triple its current position, which, as of October 19th, 2021, stands at $388 million worth of shares of GBTC.
  • The company plans to “use cash on hand” to fund the purchase and will make it on the open market, at management’s discretion, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934.
  • It’s worth noting, though, that the authorization doesn’t obligate DCG to make the purchase at any specific time, and it can be extended, modified, or discontinued.
  • DCG is the parent company of the largest digital asset manager Grayscale Investments, which has nearly $55 billion in AUM. Somewhat expectedly, the Bitcoin Trust is responsible for the largest share with over $40 billion.
  • Additionally, Grayscale is striving to convert its Bitcoin Trust into a spot Bitcoin ETF and has reportedly filed documents with the SEC to do so.

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