Digital Currency Group, the parent company of Grayscale Investments. Announced plans to purchase up to $250 million worth of shares of Grayscale Bitcoin Trust.
DCG will use its cash on hand to fund and make the purchases through the open market. The share purchase authorization does not require DCG to acquire any specific number of shares in any period.
Each GBTC share corresponds to a small amount of Bitcoin, but the shares can trade above or below the value of the underlying asset.
The amount of share purchases will depend on the levels of cash available, price and prevailing market conditions. Information regarding stock purchases will be available in the GBTC periodic reports filed with the U.S. Securities and Exchange Commission (SEC).
To a degree, DCG is jumping on a trend of companies investing their cash holdings into Bitcoin. The likes of Tesla, Square and MicroStrategy have all made big Bitcoin purchases in recent weeks.
Founded in 2015 by CEO Barry Silbert, DCG is the most active investor in the blockchain sector. Its mission is to accelerate the development of a better financial system through the proliferation of digital assets and blockchain technology.
DCG currently backs more than 175 blockchain-related companies in over 35 countries. And also invests directly in digital currencies and other digital assets.
DCG has long track record of investing in crypto companies
In addition to Grayscale, Digital Currency Group is the parent company of global digital asset prime brokerage Genesis. As well as CoinDesk, Foundry and Luno.
Grayscale Investments is the world’s largest digital currency asset manager. With more than $42.1 billion in assets under management.
Grayscale provides access and exposure to the digital currency asset class in the form of a traditional security without the challenges of buying, storing and safekeeping digital currencies directly.
Grayscale’s products operate within existing regulatory frameworks. While also creating secure and compliant exposure for investors. They additionally are distributed by Genesis Global Trading.
