According to the latest reports, Digital Currency Group (DCG) has now received approval for purchasing up to $750 million worth of Grayscale Bitcoin Trust’s shares. For those who do not know, Digital Currency Group (DCG) is Grayscale Investments’ parent company, which is a digital asset manager.
Digital Currency Group (DCG) announced the increase in the purchase volume of the Bitcoin Trust shares on Monday, May 3, 2021. Prior to the announcement, Digital Currency Group’s (DCG) purchase limit for Bitcoin Trust shares was just $250 million.
However, in the announcement, the Digital Currency Group (DCG) has confirmed it has increased its purchase limit by $500 million. Therefore, the company’s new purchase capacity for the Bitcoin Trust shares is $750 million.
The Digital Currency Group (DCG) has also provided more details surrounding the increase in the company’s shares purchase capacity. The firm has revealed that with the new update, there are not obligations over DCG for carrying out certain share purchases. The firm is not even obligated to carry out any purchase before the end of any particular period.
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In addition to the above, the Digital Currency Group (DCG) has made another announcement in regards to its capability of carrying out purchases. The firm has intimated that it holds the right of making changes, increasing buying limits, or discontinuing the purchases at any time.
The firm has also clarified that it would consider several factors before proceeding with the purchase of shares. Some of the major factors involved while purchasing shares at Bitcoin Trust would be market conditions, the demand of shares, price of shares, and availability of cash.
The Digital Currency Group (DCG) also revealed how many Grayscale Bitcoin Trust shares it currently has under its possession. As revealed by the DCG, it has $193.5 million worth of Bitcoin Trust shares in its possession.
The firm has revealed as always, it would follow the normal procedure in order to carry out the purchase of the shares. The firm has confirmed that the management at the DCG would decide whether the company should proceed with the purchase or not.
If yes, then the Digital Currency Group (DCG) would use the cash funds in order to carry out purchases for the Bitcoin Trust shares. The firm would remain fully compliant throughout the purchasing processes and has followed the Securities Exchange Act. The platform has done this after filing a 10b-18 form at the regulatory authority.
The recent move made by the Digital Currency Group (DCG) had already been hinted at back in March of 2020. At that time, the Digital Currency Group (DCG) had expressed that it wanted to acquire $250 million worth of bitcoin trust.