2 years ago
The Digital Currency Group (DCG) committee has authorized a stock repurchase program of up to $250M crossed its 9 publically traded cryptocurrency trusts.
The program includes up to $30 cardinal worthy of shares successful the Grayscale Litecoin Trust (LTCN), $10 cardinal of the Grayscale Horizen Trust (HZEN), $10 cardinal of the Grayscale Zcash Trust (ZCSH), and up $200 cardinal successful immoderate of its different six publically traded products, including the Grayscale Bitcoin Trust (GBTC).
DCG volition usage currency connected manus to money the repurchases, and volition bash truthful successful the unfastened marketplace nether management’s discretion.
The Grayscale Bitcoin Trust (GBTC) has been trading astatine a steep discount to nett plus worth for months, and successful October DCG upped its buyback program for that merchandise to $1 cardinal from $750 million. As of this morning, determination was $301.3 cardinal of remaining authorization successful that program, and arsenic of yesterday, the spot was selling for a 24.9% discount to NAV.
The Litecoin, Horizen, and Zcash trusts besides commercialized astatine sizable discounts to NAV.
“Typically erstwhile a closed-end money is trading astatine a double-digit discount to NAV, the manager volition repurchase shares to effort to trim the discount for investors,” Accelerate Financial Technologies CEO Julian Klymochko told CoinDesk. “It looks similar DCG is buying (as opposed to the funds), truthful they indispensable spot bully value,” helium added.
The eventual solution to the discount volition beryllium conversion of the Trust to an ETF, and DCG/Grayscale has made nary secret of its involvement successful doing that.
DCG is Grayscale’s genitor company, which besides owns CoinDesk arsenic an autarkic subsidiary
DISCLOSURE
The person successful quality and accusation connected cryptocurrency, integer assets and the aboriginal of money, CoinDesk is simply a media outlet that strives for the highest journalistic standards and abides by a strict acceptable of editorial policies. CoinDesk is an autarkic operating subsidiary of Digital Currency Group, which invests successful cryptocurrencies and blockchain startups. As portion of their compensation, definite CoinDesk employees, including editorial employees, whitethorn person vulnerability to DCG equity successful the signifier of stock appreciation rights, which vest implicit a multi-year period. CoinDesk journalists are not allowed to acquisition banal outright successful DCG.
Michael Bellusci is CoinDesk's crypto payments reporter.
Subscribe to The Node, our regular study connected apical quality and ideas successful crypto.
By signing up, you volition person emails astir CoinDesk merchandise updates, events and selling and you hold to our terms of services and privacy policy.
English (US) 