Digital Currency Group buys $ 81.3 million in GBTC shares in Q1

[Leviathan.007]

The cryptocurrency capital giant Digital Currency Group bought $ 81.3 million worth of Grayscale Bitcoin Trust shares in the open market in the first quarter of the year, according to a report by the US Securities and Exchange Commission (SEC).
The company announced its $ 250 million repurchase plan in March. DCG bought 1,695,217 shares at an average price of $ 47.94 per share in one month.
According to U.Today, the stock exchange commissioned a green light to invest $ 500 million in early May, bringing the total to $ 750 million. However, this license does not require DCG to purchase any shares.
Grayscale Bitcoin Trust continues to trade with a wide 15.92% discount after the premium was first negative in late February.



Source: https://u.today/digital-currency-group-purchased-813-million-worth-of-gbtc-shares-in-q1

[The Sceptical Chymist]

Okay, so what's the real significance of this news?  I'm not familiar at all with Digital Currency Group--do they usually invest in actual cryptocurrencies as opposed to shares in things like Grayscale?

Even if this isn't earth-shattering news, I do find stories like this pretty interesting as they show that there's a lot of money being pumped into the crypto space (though in this case it's indirectly), which ought to be the tide that lifts all ships.  I don't know exactly why all of these corporations are investing in crypto these days, but something tells me it doesn't bode well for fiat.  Big Wall Street companies generally have better information than the average retail investor does, and I'm guessing that they can see something bad coming on the horizon.

[franky1]

DCG IS GREYSCALE

needing to buy back their own shares. is usually a thing when they over supplied the market beyond demand. and it drags the price down..
so they buy back some shares to lessen the supply so that it creates demand

one reason for the lack of demand is that many fiat institutions do not allow the purchase of greyscale shares.

for instance JPMorgan.chase. does not allow the purchase of greyscale shares but allows users to put their funds in by transfer to then play on JPMorgan trading platform.

so while barry silbert advertises trading greyscale on JPMorgan platforms
https://www.coindesk.com/jpmorgan-to-let-clients-invest-in-bitcoin-fund-for-first-time-sources
but,, jpmorgan not allowing the actual purchase through JPMorgan

so yea many many traders tried to get into JPMorgan platform due to greyscale advertising they can trade greyscale. but no option to purchase fresh shares

hense why greyscale seen no/low demand.


and yes barry silbert didnt even know that chase didnt allow share purchases of crypto. he prefered to ask random twitter users to find out, rather than speak to chase direct months ago
https://twitter.com/BarrySilbert/status/1385271143360307200

..
so thats what happens when the guy that owns greyscale coindesk and DCG circle jerks his own media stage and platform without doing the checks to make sure its even going to work

[Coyster]

I don't know exactly why all of these corporations are investing in crypto these days, but something tells me it doesn't bode well for fiat.

It could strongly be cause of all the incessant printing of cash that would prolly cause inflation, and by extension affect the 'value' of Fiat currencies, imo, I think this corporations are only being proactive in designating a particular amount into cryptocurrency to see what happens in the end, when the pandemic has been controlled to a reasonable extent, I think that's when Fiat/the economy will strongly feel the impact of most of the policies employed in the first place to alleviate the situation, it's a sort of double whammy.

Having said that, another thing to note is that the believe in the Bitcoin network has become stronger, and it stemmed from Bitcoins resistant to the effects of the pandemic, it was thought it would plunge like most things did (economics included), but it instead started a bull run, that's enough to allure institutional investors and individuals as well.