Investment management firm, Marlton, has applauded the recent decision to authorize the purchase by Digital Currency Group (DCG) of up to a total of $750 million worth of shares of Grayscale Bitcoin Trust (GBTC). This latest action follows Marltonâ€™s recent call for DCG and the Grayscale board to do more to narrow the discount on GBTC shares.
Support for Purchase Authorization
In a statement, Marltonâ€™s Managing Member, James C. Elbaor says this DCG action is â€œa more constructive approach to alleviating the dramatic discount between the market price of GBTC shares and net asset value.â€ He added:
As previously reported by Bitcoin.com News, Martlonâ€™s Elbaor argued in an open letter that a modified Dutch auction tender offer for GBTC shares would â€œmaterially narrow â€” if not eliminate â€” the discount to the net asset value.â€
No Specific Number of Shares
Meanwhile, in its own statement following the new purchase authorization, Grayscaleâ€™s parent reveals that â€œas of April 30, 2021, DCG has purchased $193.5 million worth of shares of GBTC.â€ These purchases follow an earlier authorization which allowed the DCG to purchase up to $250 million GBTC shares.
However, DCG warns that this new authorization does not bound or obligate it to make any particular purchases. The parent company of Grayscale Investments explained:
Concerning such future stock purchases, DCG says this information will be available in the 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 Exchange Act.
Do you think the new authorization will help to significantly reduce the discount on GBTC shares? Tell us your views in the comments section below.
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