Grayscale parent firm DCG to expand GBTC buy limit by $500M

Digital Currency Group has purchased a total of $194 million worth of GBTC shares so far.

Digital Currency Group, the parent company of digital asset manager Grayscale Investments, is now authorized to purchase up to $750 million worth of 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 purchase authorization does not obligate DCG to acquire any certain amount of shares in any period, and it may be expanded, modified or discontinued at any time, DCG noted. Actual purchases will depend on many factors like the levels of available cash as well as price and market conditions, the firm said.

DCG mentioned that the firm had purchased a total of $193.5 million worth of GBTC shares as of Friday. DCG plans to use cash to fund the purchases and will make the purchases at management’s discretion in compliance with Rule 10b-18 under the Securities Exchange Act, the company noted.

The news comes shortly after DCG originally announced in March its plan to purchase up to $250 million of GBTC shares. The move came amid volatile conditions for GBTC and plans to hire talent in the exchange-traded fund industry, which signaled a potential diversification by the firm.

Launched back in 2013 as the Bitcoin Investment Trust, GBTC is the world’s largest Bitcoin (BTC) fund, offering investors the opportunity to gain exposure to Bitcoin through a publicly quoted private trust. As of Friday, the assets under management in GBTC amounted to more than $36 billion, with Grayscale’s total AUM standing at $46.7 billion. In mid-April — when Bitcoin touched it’s all-time highs above $64,000 — Grayscale’s total AUM topped $50 billion.

You might be interested in …

BTC drops, XRP is ‘toxic waste,’ Facebook’s Diem in trouble: Hodler’s Digest, Dec. 6–12


The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — one week on Cointelegraph in one link! Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much […]

Read More

MicroStrategy dismisses market uncertainty, buys another Bitcoin dip


The software company added another $10 million in BTC to its war chest. MicroStrategy, a software company that’s been making headlines for its aggressive Bitcoin purchases, has made another $10 million purchase after Thursday’s market uncertainty. As announced by CEO Michael Saylor, the company purchased another 205 BTC at an average price of $48,888, spending $10 […]

Read More

Home Crypto Mining Will Lead to ‘Heavy Fine:’ Reports Iran Energy Ministry


A spokesman for Iran’s Energy Ministry has said those mining crypto using household electricity will pay a heavy fine if they are identified.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *