Digital Currency Group designates $250 million for the repurchase of Grayscale trust products.
DCG intends to buyback $10 million worth of the Grayscale Horizen Trust (HZEN).
DCG has over $300 million in authorized share repurchases remaining.
LAGOS (CoinChapter.com) — Digital Currency Group (DCG), the parent company of Grayscale, the world’s largest digital currency asset manager, has set aside $250 million to repurchase shares of several Grayscale investment products.
Digital Currency Group Announces $250 Million Share Repurchase Program for Grayscale® Litecoin Trust (OTCQX: $LTCN), Grayscale® Horizen Trust (OTCQX: $HZEN), Grayscale® Zcash Trust (OTCQX: $ZCSH), and other Grayscale Products https://t.co/zKoEWkfyk1
Barry Silbert, founder, and CEO of Digital Currency Group announced the move on Thursday through his official Twitter account. According to him, DCG’s board of directors has authorized $250 million to repurchase shares of its nine publicly-traded cryptocurrency trusts.
The statement shared by Silbert indicated that Grayscale Litecoin Trust (LTCN) would be allocated $30 million worth of shares. Similarly, Grayscale Horizen Trust (HZEN) and Grayscale Zcash Trust (ZCSH) will be allotted $10 million worth of shares, respectively.
Furthermore, about $200 million worth of shares will be spent on Grayscale remaining six publicly-traded products: Bitcoin Cash Trust (BCHG), Bitcoin Trust (GBTC), Digital Large Cap Fund (GDLC), Ethereum Classic Trust (ETCG), Ethereum Trust (ETHE), and Stellar Lumens Trust (GXLM).
The asset manager also revealed that it conduct the buybacks on the open market, using its cash on hand. It, however, did not disclose a time frame for the repurchase of its publicly traded cryptocurrency trusts.
Over $300M In Authorized Share Repurchases remaining
Digital Currency Group also revealed that it still has over $300 million in authorized shares for repurchases remaining. Recall that the company has increased its buyback authorization program since last year.
The value of Grayscale investment products has recorded a steady decline from its peak in November 2021. Source: YCharts
Meanwhile, the value of Grayscale’s holdings has descended from a high of around $43.6 billion in November last year. As a result, the company’s total Assets Under Management (AUM) currently sits at $28.1 billion.
Daniel Abel is an experienced journalist and crypto enthusiast. He has been covering the blockchain and crypto industry since 2018 and believes digital currency is the future.
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