Digital currency group, the parent company of digital asset manager Grayscale Investments, has received approval to purchase shares in the Grayscale Bitcoin Trust (GBTC) valued at up to $ 750 million.
The company announced Monday that DCG had increased its prior approval to purchase GBTC stock valued at up to $ 250 million for an additional $ 500 million.
The share purchase authorization does not oblige DCG to acquire a certain number of shares in a certain period and can be extended, changed or interrupted at any timeDCG listed. Actual purchases will depend entirely on many factors such as: B. the available cash and the price and market conditions, the company said.
DCG mentioned that by April 30, 2021, the company had purchased a total of $ 193.5 million in GBTC shares. DCG plans to use cash to fund the purchases and will do so at management’s discretion under Rule 10b-18 of the Securities Exchange Act, the company said.
The news comes shortly after DCG announced its plan in March to buy up to $ 250 million worth of GBTC stock.. The move came due to volatility at GBTC and the recruitment of talent in the exchange-traded fund industry, suggesting potential diversification for the company.
Founded in 2013 as Bitcoin Investment Trust, GBTC is the world’s largest Bitcoin fund and offers investors the opportunity to get exposure to Bitcoin (BTC) through a publicly traded private fund. As of April 30th, the assets were managed in the GBTC Trust they rose to more than $ 36 billion, while Grayscale’s total assets were $ 46.7 billion. Mid-April When Bitcoin hit its all-time high of over $ 64,000, Grayscale’s total assets hit $ 50 billion.