Grayscale Investments’ parent company, Digital Currency Group, has been authorized to purchase Grayscale Bitcoin Trust shares worth $1 billion. The previous authorization of Digital Currency Group remained at $750 million.
The companies will be able to significantly increase their position in the trust with the approval of an additional $250 million, in addition to the previously purchased $388 million GBTC shares. DCG will use cash to make purchases and will execute orders on the open market.
Because the two companies are linked, the upcoming transaction is being arranged under the Securities Exchange Act of 1934 (the “Exchange Act”), and unauthorized purchases of the company’s trust shares will be considered a conflict of interest.
The purchase authorization gives DCG the right, but not the obligation, to purchase additional shares at any time. Following the SEC’s approval, the company is increasing the available purchasing threshold that it can use in the future. The company will determine the timing and size of the purchase based on market conditions.
Purchases of the trust’s shares will be disclosed in the trust’s Securities and Exchange Commission reports. It will include the amount purchased, the timing, and any additional information that regulators and holders will have access to.
Digital Currency Group, led by CEO Barry Silbert, was founded in 2015 and is now one of the most active digital assets industry beneficiaries, as well as one of the field’s most active investors. Today, the company is a backer of over 175 blockchain-related businesses in over 35 countries.
It is the parent company of Genesis, Grayscale Investments, Coindesk, Foundry, and other industry-leading entities, as well as having a significant investment portfolio that includes directly purchased cryptocurrencies.