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Digital Currency Group Boosts GBTC Share Purchases to $750M Limit
GBTC has been trading at a discount for several months in the face of rising competition and the prospect of a bitcoin ETF being approved in the U.S. this year.
Updated Sep 14, 2021, 12:50 p.m. Published May 3, 2021, 1:17 p.m.
Digital Currency Group (DCG), the parent of Grayscale, said it has authorized the purchase of up to $750 million worth of the lagging shares of the Grayscale Bitcoin Trust (OTCQX: GBTC), up from a $250 million level earlier.
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In an announcement Monday, DCG, which is also the parent company of CoinDesk, said it had already purchased $193.5 million GBTC shares as of April 30.
GBTC has been trading at a discount for several months in the face of competition from other closed-end bitcoin funds, bitcoin exchange-traded funds (ETFs) in Canada and the prospect that a bitcoin ETF could be approved in the U.S. sometime in the next year.
Repurchasing shares is a common tool among companies that are trying to increase the price of their shares by creating demand for the shares while decreasing the number of shares outstanding.
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What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
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- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
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