DCG Could Buy $250 million of Grayscale Bitcoin Trust

Share Article
In Brief
  • DCG authorizes share buy of up to $250 million in Grayscale Bitcoin Trust.

  • The company has not confirmed how much or when it will buy the shares.

  • GBTC’s discount considered a signal of Bitcoin rise in the neat future.

  • promo

    Gravity Dex Protocol: Bringing DeFi to Cosmos

The Trust Project is an international consortium of news organizations building standards of transparency.

Digital Currency Group (DCG) has been authorized to buy up to $250 million worth of shares of Grayscale Bitcoin Trust (GBTC).

Sponsored



Sponsored

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. 

Sponsored



Sponsored

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. 

GBTC Could Indicate Bitcoin price 

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.” 

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.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

The opinion of BeInCrypto staff in a single voice.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go