Controlling shareholder stakes in GBTC are 'highly illiquid': report
"This is good news for GBTC shareholders and the fight against FUD," Selkis said.
New
According to a new Twitter post from Ryan Selkis, CEO of blockchain research firm Messari, majority shareholders of Grayscale Bitcoin Trust (GBTC) Genesis Global and Digital Currency Group cannot simply "dump" their holdings to raise more capital. Selkis explained that the restrictions are due to Rule 144A of the US Securities Act of 1933, which requires issuers of over-the-counter, or OTC, entities to give notice of proposed sales, as well as a quarterly cap on the sale of either 1% of outstanding shares or weekly trading volume.
2/ DCG has bought almost $800 million worth of GBTC shares since the premium went to a discount in early 2021.
DCG's Board of Directors has authorized up to $1.2 billion in stock purchases in Grayscale Trusts.
Given current cash flow issues, the remainder is likely on hold indefinitely.
— Ryan Selkis (@twobitidiot) November 28, 2022Based on calculations provided by Selkis, this works out to a maximum of $62 million in liquidations per quarter based on the outstanding stock test and $23 million in liquidations per quarter based on the volume test transactions. “DCG-Genesis is *much* more likely to refinance using GBTC as collateral,” he wrote.
Grayscale Bitcoin Trust, the world's largest Bitcoin investment fund, is currently trading at a discount to the net asset value (NAV) of
"This is good news for GBTC shareholders and the fight against FUD," Selkis said.
New
According to a new Twitter post from Ryan Selkis, CEO of blockchain research firm Messari, majority shareholders of Grayscale Bitcoin Trust (GBTC) Genesis Global and Digital Currency Group cannot simply "dump" their holdings to raise more capital. Selkis explained that the restrictions are due to Rule 144A of the US Securities Act of 1933, which requires issuers of over-the-counter, or OTC, entities to give notice of proposed sales, as well as a quarterly cap on the sale of either 1% of outstanding shares or weekly trading volume.
2/ DCG has bought almost $800 million worth of GBTC shares since the premium went to a discount in early 2021.
DCG's Board of Directors has authorized up to $1.2 billion in stock purchases in Grayscale Trusts.
Given current cash flow issues, the remainder is likely on hold indefinitely.
— Ryan Selkis (@twobitidiot) November 28, 2022Based on calculations provided by Selkis, this works out to a maximum of $62 million in liquidations per quarter based on the outstanding stock test and $23 million in liquidations per quarter based on the volume test transactions. “DCG-Genesis is *much* more likely to refinance using GBTC as collateral,” he wrote.
Grayscale Bitcoin Trust, the world's largest Bitcoin investment fund, is currently trading at a discount to the net asset value (NAV) of
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