Investment management company Marlton praised the recent decision to authorize Digital Currency Group (DCG) to purchase Grayscale Bitcoin Trust (GBTC) shares worth US$750 million. This latest action comes before Malton recently called on DCG and the Grayscale Committee to take more measures to reduce the discount on GBTC stock.
Support purchase authorization
James C. Elbaor, the managing director of Marlton, said in a statement that the DCG operation “is a more constructive way to reduce the huge discount between the market price of GBTC stock and the net asset value.” He added. Up:
We continue to believe that GBTC maintains a competitive advantage as the world’s largest Bitcoin fund, and appreciate that GBTC recognizes the need to take meaningful steps consistent with shareholder value creation and to ensure the best path forward.
As previously reported by Bitcoin.com News, Martlon’s Elbaor pointed out in an open letter that the revised Dutch bid for GBTC stock will “substantially reduce-or even eliminate-the discount to net asset value.”
At the time, Elbaor warned that if Grayscale Investments did take notice, Marlton reserved the “right to take further action to protect our investments and the investments of other shareholders.”
No specific number of shares
At the same time, in their own statement after obtaining the new purchase authorization, Grayscale’s parents revealed: “As of April 30, 2021, DCG has purchased US$193.5 million worth of GBTC stock.” These purchases are under earlier authorization. The authorization allows DCG to purchase GBTC shares not exceeding US$250 million.
However, DCG warned that this new authorization does not restrict or obligate any specific purchases. Grayscale Investments’ parent company explained:
The share purchase authorization letter does not obligate DCG to purchase any specific number of shares in any period, and can be extended, expanded, modified or suspended at any time. The actual time, amount and value of the stock purchase will depend entirely on many factors, including the level of available cash, price and current market conditions.
Regarding such future stock purchases, DCG stated that in accordance with the requirements of the applicable rules of the Exchange Act, the information will be provided in the GBTC periodic report filed by the U.S. Securities and Exchange Commission (SEC) in 10-K and 10-Q formats.
Do you think the new authorization will help significantly reduce the discount of GBTC shares? Tell us your opinion in the comments section below.
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