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11th Mar 2021
Dalmas Ngetich, for CryptoAltum News Team

Grayscale Investments' Parent Company is buying $250 million of Bitcoin

The Digital Currency Group (DCG), the parent company of Grayscale Investments, is buying $250 million of Grayscale Bitcoin Trust (GBTC), an announcement on Mar 10reveals. DCG will use their cash reserves to facilitate the purchase, buying GBTC—which stood for the better part of the week at a discount, at open markets. There are no obligations as to the number of shares DCG can purchase. All this will depend on prevailing market conditions, the Bitcoin price, and the availability of cash.


The exposure of DCG to GBTC is asignificant boostfor the underlying asset, Bitcoin. Through Grayscale, BTC has received millions from investors across the world. Following the unprecedented level of demand, the GBTC shares were trading at a premium for the better part of last year and early 2021. The DCG investment could spark more demand for the coin, pushing prices above the February 2021 highs of $58k.

Impact on the BTC Price:

Bullish. Thus far, it has been an institutional playground for Bitcoin and crypto. The involvement of yet another regulatory compliant company seeking BTC exposure via GBTC highlights the emerging use of BTC as a shield against inflation and the central bank's money printing.

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