Grayscale’s Parent Company to Buy $250M Bitcoin via GBTC

Digital Currency Group (DCG), the parent company of Grayscale LLC, has invested $250 million in Bitcoin using Grayscale’s Bitcoin Trust shares. 

In compliance with SEC laws, DCG filed form Rule 10b-18 to inform shareholders about their BTC investment decision. The firm will disclose the buy price and time of purchase after the trade, recorded in Forms 10-K and 10-Q filed quarterly and annually.

The press release noted: 

“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.”

The group has joined MicroStrategy, Tesla, Square, and others in adding Bitcoin to its balance sheet.

Currently, GBTC shares are trading at a discount of 3.22% on the market. It is possible that instead of issuing new shares at net asset value (NAV), DCG may buy GBTC from regulated brokerages at a discount.

Digital Currency Group just announced that they will be buying shares of GBTC in the open market.

Discounted bitcoin being gobbled up.

— Pomp