Grayscale buys bitcoin for US$255 million
Grayscale, the largest digital asset manager, is covering itself with another 7756 bitcoin. This is according to a document filed with the SEC.
Grayscale Bitcoin Trust has made further investments in digital gold. This is according to a form from the US Securities and Exchange Commission (SEC). According to the document, the world’s largest digital asset manager bought 7,756 Bitcoin worth more than 255 million US dollars. In addition, the Bitcoin Future trust issued another 8 million shares at a unit price of 0.001 BTC each. Grayscale has thus issued just over 684 million shares – for the equivalent of about 684,000 Bitcoin. However, only accredited investors with an annual income of at least 100,000 US dollars can invest. Investors buy Bitcoin at the current price and can sell them again after a minimum holding period of six months.
Grayscale holds three per cent of all Bitcoin
In total, Grayscale now manages over 616,000 BTC, according to bitcointreasuries. At the current exchange rate, the equivalent value of the Grayscale Bitcoin Trust (GBTC) thus amounts to almost 23 billion US dollars. As the asset manager discloses in its latest quarterly report, bitcoin inflows in Q4 2020 alone amounted to almost 194 per cent of all mined bitcoin, with institutional clients accounting for 93 per cent of capital inflows. Even by conservative estimates, which ignore bitcoin lost over the years, Grayscale holds around 3 per cent of the global amount in circulation.
In the process, Grayscale also proves that it can quickly divest itself of unfavourable assets. Ripple’s XRP, for example, had to make this experience. The asset manager unceremoniously dissolved its XRP trust after various crypto exchanges removed all XRP trading pairs. The background is the current proceedings between the American SEC and the Californian FinTech. The SEC accuses Ripple of trading an undeclared security with its cryptocurrency XRP.