Digital Currency Group Boosts GBTC Share Purchases to $750M Limit
GBTC has been trading at a discount for several months in the face of rising competition and the prospect of a bitcoin ETF being approved in the U.S. this year.
Digital Currency Group (DCG), the parent of Grayscale, said it has authorized the purchase of up to $750 million worth of the lagging shares of the Grayscale Bitcoin Trust (OTCQX: GBTC), up from a $250 million level earlier.
In an announcement Monday, DCG, which is also the parent company of CoinDesk, said it had already purchased $193.5 million GBTC shares as of April 30.
GBTC has been trading at a discount for several months in the face of competition from other closed-end bitcoin funds, bitcoin exchange-traded funds (ETFs) in Canada and the prospect that a bitcoin ETF could be approved in the U.S. sometime in the next year.
Repurchasing shares is a common tool among companies that are trying to increase the price of their shares by creating demand for the shares while decreasing the number of shares outstanding.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
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