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Digital Currency Group Plans to Invest $250 Million in GBTC

Digital Currency Group Plans to Invest $250 Million in GBTC

Digital Currency Group (DCG), a crypto investment firm and Grayscale’s parent company, plans to buy up to $250 million of shares in GBTC (Grayscale Bitcoin Trust). Grayscale investments manage the Grayscale Bitcoin Trust. The planned investment indicates DCG could end up receiving indirect exposure to Bitcoin worth $250 million. Moreover, DCG plans to acquire GBTC shares via the open market. DCG will employ cash on hand to fund its exposure to Bitcoin. Moreover, DCG has a massive track record of funding crypto companies. It involves Blockstream, Coinbase, and Chainalysis.

According to analysts, DCG is following the trend of investing their cash holdings in Bitcoin to a certain level. For instance, MicroStrategy, which holds 91,604 BTC’s worth $5 billion. Carmaker Tesla and payment company Square have also followed the trend by purchasing $1.5 billion and $120 million BTC’s, respectively. Nevertheless, despite the broad exposure to the crypto industry as a whole, the firm is not impulsively acquiring Bitcoin from the open market. 

Grayscale possesses $43 Billion in Assets Under Management

After DCG’s announcement, analysts witnessed an eye-catching bull-run in the crypto space. Bitcoin reached new heights of $56,400 for the first time in two weeks. Further, DCG elucidated that the authorization does not reflect the immediate rush to buy the GBTC shares. Furthermore, it does not enforce the firm to acquire any particular number of shares. The company also asserts that the order could be extended, modified, enlarged, or even terminated at any given time. 

Meanwhile, Grayscale is the largest digital asset manager globally, with over $43 billion in assets under management. The company’s crypto assets’ overall value is growing due to a current jump in Bitcoin and Ethereum. As per the company’s official announcement on Twitter, Bitcoin is the most significant holding of Grayscale. The asset manager now has more than 650,000 BTC under management with a total value of over $36 billion. The crypto asset manager also has approximately 3.17 million Ethereum under management. The total worth of Grayscale’s ETH under management now surpasses around $5.8 billion. The company bought about 130,000 ETH in the last 30 days.

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