Barry Silbert's Digital Currency Group (DCG) announced its intention to acquire up to $ 750 million in Grayscale Bitcoin Trust (GBTC) shares.
The announced figure is three times more than the one announced in March.
According to the message, as of April 30, 2021, DCG spent $ 193.5 million for these purposes.
The company intends to continue to buy GBTC on the open market.
DCG stressed that the decision to purchase at any time can be revised both in terms of time and amount, or even withdrawn. It depends on the level of free liquidity, the price of the first cryptocurrency, and market conditions.
The purchase will be disclosed in GBTC's 10-K and 10-Q filings to the US Securities and Exchange Commission (SEC).
Since February 23, GBTC shares have been trading at a discount to the price of the first cryptocurrency.
On April 22, the decline in GBTC quotations relative to the net asset value (NAV) reached 18.92%.
Arcane Research cited the emergence of alternative instruments, the launch of bitcoin funds, and the direct acquisition of the first cryptocurrency by individual companies among the reasons for the formation of the discount.
Earlier, the Canadian regulator approved the third exchange-traded fund based on the first cryptocurrency (ETF), available to investors, including in US dollars. A similar instrument was also listed in Brazil.
In the spring of 2021, the SEC began reviewing two ETF launch applications from WisdomTree and VanEck. In April, the regulator extended the term for studying the latter until June 17, 2021.
Grayscale plans to transform GBTC into a digital gold exchange-traded fund. In March, the company posted nine vacancies related to the initiative.