Digital Currency Group plans to purchase $250M Grayscale Bitcoin Trust Shares
The parent company of Grayscale, Digital Currency Group, said that they are sanctioned to purchase $250 million lagging shares of the Grayscale Bitcoin Trust (GBTC). GBTC is a Digital Currency flagship product.
In an announcement on Wednesday, Digital Currency Group, which is also a parent company of CoinDesk said that they will be buying GTBC shares in an open market.
Last week, GTBC shares fell from $58.22 to $41.40. Apart from this, the shares which traded at a premium price of bitcoin recently started trading at a discounted price.
Repurchasing is a customary tool for companies that are trying to increase share prices. They create demand while decreasing the number of outstanding shares.
In recent trading, GBTC shares were up by 4.34%.
Digital Currency Group said that they plan to use cash in hand funds for purchasing.
The company also added that the actual timing, amount, and value of share purchases will depend on a lot of factors including cash availability, price, market conditions.
The Grayscale Bitcoin Trust is the world’s largest bitcoin fund, which offers investors an opportunity to gain exposure to the leading cryptocurrency.
According to its latest figures, Grayscale has $42.1 billion as net assets across all its cryptocurrency trusts and funds.