Investment management firm Marlton has welcomed the recent decision to authorize the Digital Currency Group (DCG) to purchase up to $ 750 million in shares in Grayscale Bitcoin Trust (GBTC). This latest move follows Marlton’s recent call to DCG and the Grayscale board to do more to reduce the discount on GBTC stock.
Purchase authorization support
In one statementJames C. Elbaor, executive director of Marlton, says this DCG move is “a more constructive approach to reducing the dramatic discount between the market price of GBTC shares and net asset value”. He added:
We continue to believe that GBTC has a competitive advantage as the world’s largest Bitcoin fund, and we know that GBTC has recognized the need to take meaningful steps that are focused on creating shareholder value and ensuring the best way forward.
As previously reported by Bitcoin.com News, Martlons Elbaor argued in an open letter that a modified Dutch auction offer for GBTC shares would “significantly reduce – if not eliminate” the discount to net asset value.
At the time, Elbaor warned that Marlton reserved the right “to take further steps to protect our investments and those of other shareholders” if Grayscale Investments did so.
No specific number of shares
Meanwhile for yourself statement Following the new purchase approval, Grayscale’s parent company announces that “DCG has purchased shares in GBTC valued at $ 193.5 million as of April 30, 2021”. These purchases follow an earlier approval that allowed DCG to purchase up to 250 million GBTC shares.
However, DCG warns that this new approval does not oblige or oblige them to make any specific purchases. The parent company of Grayscale Investments stated:
The share purchase authorization does not oblige DCG to acquire a certain number of shares in a certain period of time and can be extended, extended, changed or discontinued at any time. The actual timing, amount, and value of stock purchases will depend entirely on a number of factors, including the amount of cash available, the price, and prevailing market conditions.
With respect to such future share purchases, DCG says this information will be available in GBTC periodic reports filed with the Securities and Exchange Commission (SEC) on Forms 10-K and 10-Q, as required by the applicable Rules of the Stock Exchange Act is required.
Do you think the new approval will help significantly reduce the discount on GBTC shares? Let us know what you think in the comments section below.
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