Digital Currency Group (DCG), the parent company of the world’s largest digital currency asset manager, Grayscale Investments, has recently made plans to purchase about $250 million worth of shares of the Grayscale Bitcoin Trust
According to a press release published on Wednesday, DCG intends to use cash on hand for the buyback. The purchase will also be conducted “on the open market, at management’s discretion, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934.”
The date for the purchase is unknown but will be determined by several factors such as the level of cash on hand, the price of the share, and the prevailing market conditions.
The press release, however, did not also disclose the motive for the purchase by DCG. The company has been a very active investor in the blockchain space.
Its goal is to hasten the development of a better financial system by investing, building, and buying blockchain companies, including Grayscale.
The Grayscale Bitcoin Trust is currently the world’s largest traded cryptocurrency fund. The fund provides its investors access to the digital asset in the form of traditional security without the challenges of buying, storing, and safekeeping digital currencies directly.
The Fund has attracted a lot of investors including large institutional investors like Bill Miller’s Opportunity Trust which invested about $337 million in the Fund.
Massive Institutional Bitcoin Adoption
In the past few months, the cryptocurrency industry has witnessed a massive bitcoin adoption as never seen before. Large institutional investors are joining the bitcoin mania every day.
The current surge in the digital asset’s price has been attributed to the influx of long-term investors into the crypto space who see bitcoin as a hedge against inflation.
With bitcoin closer to its supply cap of 21 million coins since 88.8% of its total supply has already been mined, the speculation surrounding the digital asset is mounting.
From traditional consumer services providers to financial institutions, bitcoin adoption is taking the center stage. Just recently, bitcoin investment solutions provider, New York Digital Investment Group (NYDIG) revealed that insurance firms now hold more than $1 billion worth of bitcoin via its platform.
