Digital Currency Group (DCG) has been authorized to buy up to $250 million worth of shares of Grayscale Bitcoin Trust (GBTC)
Digital Currency Group (DCG) has been authorized to buy up to $250 million worth of shares of Grayscale Bitcoin Trust (GBTC).
DCG authorizes share buy of up to $250 million in Grayscale Bitcoin Trust
DCG is the parent company of Grayscale Investments, which runs Grayscale Bitcoin Trust (GBTC). Currently, GBTC is the largest digital currency asset manager with $42.1 billion assets under management. This purchase authorization means that DCG can buy this many shares if it likes but is not obligated to do so. It can choose to buy as many or as little as it likes at any time.
When they decide to purchase, the company said it plans to cash on hand. It intends to make purchases on the open market.
The company said it would release any information on decided stock purchases in the GBTC reports filed with the Securities and Exchange Commission.
Grayscale Bitcoin Trust’s discount was recently highlighted by senior commodity strategist at Bloomberg Intelligence, Mike McGlone, indicating Bitcoin’s possible rise to $100,000.
In a tweet posted on Friday, March. 5, McGlone said:
Grayscale #Bitcoin Trust Discount May Signal March to $100,000 – Bitcoin’s end of February price disparities on U.S. regulated exchanges portend a firming price foundation, if history is a guide, and are evidence of just how nascent the crypto is. pic.twitter.com/qj6hfTvH8K
— Mike McGlone (@mikemcglone11) March 4, 2021
At the time of the tweet, GBTC’s premium was at a low of -13%. Analysts have been pointing to a multitude of signifiers for the much-hoped-for price pump. Managing director of Magnetic, William Quigley, referenced the recent halving and past market patterns because he thinks $100,000 is possible.
Even Lindsey Lohan got in on the speculation in a paid celebrity endorsement on the platform Cameo. Earlier in January, the actress said, “Bitcoin is going to $100,000. Enjoy a prosperous 2021, and I hope you all get to drive your Lambos to the moon.”
According to reports, Grayscale might also be launching a Bitcoin ETF soon, and this could be a game-changer for bitcoin.
You can see the BTC price here.
Read more:
- Equity PLUS Bitcoin ETF – A New Proposed Fund Wants To Offer Investors An Unorthodox Mix Of Stocks And Crypto
- Grayscale New Job Openings Suggest The Company Is Considering A Bitcoin Or Crypto-Based Exchange Traded Fund (ETF)