according to new twitter Position According to Ryan Serkis, CEO of blockchain research firm Messari, Grayscale Bitcoin Trust (GBTC) controlling shareholders Genesis Global and Digital Currency Group will simply sell their stakes to raise more capital. It cannot be “sold”. Mr. Selkis explained that this limitation he attributed to Rule 144A of the U.S. Securities Act of 1933. It forces issuers of over-the-counter (OTC)-traded entities to provide advance notice of proposed sales and quarterly sales caps. Either 1% of shares outstanding or weekly trading volume.
2/ DCG has purchased approximately $800 million worth of GBTC shares since the premium turned to discount in early 2021.
DCG’s Board of Directors has authorized up to $1.2 billion in stock purchases across Grayscale Trust.
The rest could be held indefinitely given the current liquidity issues.
— Ryan Serkis (@twobitidiot) November 28, 2022
Based on calculations provided by Selkis, this translates to up to $62 million in quarterly liquidations under the Shares Outstanding Test and up to $23 million in quarterly liquidations under the Volume Test. “DCG-Genesis refinancing with GBTC as collateral is *much* more likely,” he wrote.
Grayscale Bitcoin Trust, the world’s largest bitcoin mutual fund, is currently trading at a discounted net asset value (NAV). 40% This is due to liquidity issues surrounding operator Genesis Global and bankruptcy rumors surrounding owner Digital Currency Group. Digital Currency Group is said to have bought $800 million worth of his GBTC shares since it began trading at a discount to NAV. The company and its affiliates currently own approximately 10% of the Trust’s outstanding shares.
After Genesis Global began suspending withdrawals on November 16, rumors began circulating that its parent company, Digital Currency Group, was also in bankruptcy and needed to liquidate GBTC to pay back its creditors. .grayscale ever since clarified “The laws, regulations, and documents defining Grayscale’s digital asset products prohibit lending, borrowing, or otherwise interfering with the underlying digital assets of the product,” and that “Grayscale Bitcoin Trust’s underlying $BTC is owned by $GBTC and $GBTC.” 1 person. “
Grayscale also issued a letter signed by Coinbase CFO Alecia Haas and Coinbase Custody CEO Aaron Schnark, confirming that it currently holds 635,235 Bitcoins (BTC) in Grayscale’s name. is showing.