Categories: Payment system news

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

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.

10/19/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $54.3 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $UMA $BNT $ADA $SOL pic.twitter.com/gpLnx7ZdtV

— Grayscale (@Grayscale) October 19, 2021

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