Grayscale’s very own parent company, Digital Currency Group (DCG), recently announced its plans to purchase $250 million worth of Grayscale BTC Trust (GBTC) shares that have since been lagging in the open market. DCG will reportedly utilize its own cash holdings to purchase the sizeable shares, thus, granting them exposure to the current prices of BTC – albeit indirect.
The purchase announcement also came following GBTC shares’ most recent fall from its $58.22 per share all-time high last month to now-‘only’ about $50. On top of that, the shares have also observably been trading at a significant discount for a while now, which is contrary to its long-standing reputation of being sold at premium prices.
According to DCG, the precise amount, value, and timing of the share purchases depend heavily on several factors. This includes the current prices, the cash available for the company, and the present market conditions. That being said, DCG seemingly feels confident to commit nothing less than $250 million.
While DCG has built a reputation of investing in crypto-based companies for years now, this is the first time the company has announced a direct crypto investment or on funds that enable them to track crypto prices, at the very least.
And it isn’t all that new, to be honest, as repurchasing has been a standard company tool to try and increase share prices for the longest time now. This is primarily done by generating demand via decreasing the total available shares in the market – many believe that DCG is exactly doing just that.