Digital Currency Group (DCG), the parent company of Grayscale LLC, has invested $250 million in Bitcoin using Grayscale’s Bitcoin Trust shares.
DCG taps Grayscale’s GBTC discount
In compliance with SEC laws, DCG filed form Rule 10b-18 to inform shareholders about their BTC investment decision. The firm will disclose the buy price and time of purchase after the trade, recorded in Forms 10-K and 10-Q filed quarterly and annually.
The press release noted:
“The actual timing, amount, and value of share purchases will depend entirely upon a number of factors, including the levels of cash available, price, and prevailing market conditions”.
Currently, GBTC shares are trading at a discount of 3.22% on the market. It is possible that instead of issuing new shares at net asset value (NAV), DCG may buy GBTC from regulated brokerages at a discount.
The group has kickstarted 160 companies in the space at the ground level. These startups have raised a total of $1.1 billion from other investors.