Michael Sonnenshain, CEO of Grayscale Investments, has informed GBTC shareholders that the company may offer to buy back up to 20% of its outstanding shares valued at approximately $10.7 billion. did. wall street journal rReported on December 19th.
Recent market ripples have led to widespread speculation about the bankruptcy of Grayscale and its affiliates, including Digital Currency Group (DCG) and Genesis Global.
Specifically, Grayscale Bitcoin Trust (GBTC) shares trade at a 50% discount to the underlying Bitcoin price.
To allay growing concerns about GBTC’s free fall, Grayscale reportedly sent a letter Investors have hinted at plans to return some of GBTC’s capital to shareholders if the trust fails to convert into a Bitcoin exchange-traded fund (ETF).
Since 2017, Grayscale has been in a legal battle with the U.S. Securities and Exchange Commission (SEC) to gain approval to convert GBTC into an ETF. The SEC cited potential market manipulation and fraud as reasons for denying the application.
Grayscale CEO Michael Sonnenshein said: Interview with WSJ The company will use all its resources to fight to see if GBTC can be converted into an ETF.
On the other hand, Sonnenschein says:
“In the event that Grayscale is unable to return capital to GBTC shareholders via a tender offer or ETF, the company currently intends to continue operating GBTC without continuing the redemption program until successfully converted into a Spot Bitcoin ETF. are planning.”
Grayscale may offer GBTC buyback if ETF conversion fails – WSJ first appeared on CryptoSlate.
