Digital Currency Group Set to Purchase $250M Grayscale Bitcoin Trust (GBTC) Shares

Digital Currency Group (DCG), a venture capital firm focused on the digital asset market and also the parent company behind Grayscale Investments has announced the purchase of $250 million in Grayscale Bitcoin Trust (GBTC) shares. The said purchase would be done using the cash on hand in the open market.

Digital Currency Group Announces Plan to Purchase Shares of Grayscale Bitcoin Trust (OTCQX: $GBTC)
— Barry Silbert (@BarrySilbert) March 10, 2021

The announcement comes at a time when Grayscale’s Bitcoin premiums are at their lowest which has made many believe that the move to make such a massive purchase could by its parent company be intentional and to fill the growing discount.

Seeing this as a desperate attempt to fix the GBTC discount (this + etf announcement)….feeling is some big players are insolvent
— ownyourutopia (@ownyourutopia) March 10, 2021

The official statement suggests that under the authorized purchase would not necessarily see a transfer of shares and it read,
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.
Crypto Community Calls DCG Purchase a Bailout
The Grayscale Investment Fund has grown in popularity with rising Bitcoin prices and has over $40 billion worth of assets under its management. The GBTC Premium has remained high …
Story continues on CoinGape

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