Digital Currency Group, the organization behind the world’s largest cryptocurrency asset manager, has decided to enhance its Bitcoin position by authorizing the acquisition of $1 billion more worth of shares of Grayscale’s Bitcoin Trust.
- The press release dated October 20th reads that Digital Currency Group has upped its authorization from $750 million to $1 billion.
- This means the company will more than triple its current position, which, as of October 19th, 2021, stands at $388 million worth of shares of GBTC.
- The company plans to “use cash on hand” to fund the purchase and will make it on the open market, at management’s discretion, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934.
- It’s worth noting, though, that the authorization doesn’t obligate DCG to make the purchase at any specific time, and it can be extended, modified, or discontinued.
- DCG is the parent company of the largest digital asset manager Grayscale Investments, which has nearly $55 billion in AUM. Somewhat expectedly, the Bitcoin Trust is responsible for the largest share with over $40 billion.
- Additionally, Grayscale is striving to convert its Bitcoin Trust into a spot Bitcoin ETF and has reportedly filed documents with the SEC to do so.