grayscale, Bitcoin Trust (GBTC) Although determined to convert it to an ETF, the firm’s CEO said they may explore other options to return some of GBTC’s capital to shareholders.
But the trust, which traded at a discount of about 48.6% to net asset value (NAV) on Friday, is still not interested in offering repayments.
Michael Sonnenshein, CEO of the digital currency asset manager company, said in a letter to investors that if it fails to convert GBTC into an ETF, the firm will consider a tender offer that will not exceed more than 20% of GBTC’s outstanding shares.
Analysts Evaluate the Impact of Grayscale’s Buyback Announcement on Bitcoin (BTC)
A tender offer is a public solicitation that asks shareholders to offer their shares for sale at a specified price within a specified period of time. A company spokesperson said in a statement that details on such a tender offer would only be provided when it happens.
Bloomberg Intelligence ETF Analyst James Seyffart agrees with Nadig but believes the best solution for Grayscale and its investors is to convert GBTC into an ETF.
Seyffart said in a statement that refunds would likely be a good solution for GBTC investors, but bad for Grayscale and likely a negative development for Bitcoin price. Seyffart said that there are approximately 630,000 Bitcoins in the fund.
“It would definitely not be a positive situation for Bitcoin if a significant portion of these coins were sold on the open market,” Seyffart said.
Grayscale filed its first lawsuit against the SEC in October. The company’s chief legal officer, Craig Salm, said at the time that he expected the case to take between nine and 12 months.
*Not investment advice.
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