Digital Currency Group will hold another round to buy back shares of its subsidiary Grayscale. The share buyback program is centered around the investment products Litecoin, Zcash and Horizon.
Digital Currency Group (DCG) founder Barry Silbert revealed on Twitter that the $250 million share buyback program is centered around the Litecoin Trust, Horizon Trust, Zcash Trust and other Grayscale products. The previous year’s program was aimed at buying shares in Grayscale Bitcoin Trust – then a similar amount of $ 250 million was allocated for the acquisition of shares.
A share purchase decision does not oblige DCG to acquire a specific number of shares and may be extended, extended, modified or terminated at any time. DCG said the timing of the share repurchase will depend on several factors, “including the amount of cash available, price and prevailing market conditions.”
DCG does not specify the reason for this decision, however, in most cases, share repurchases can be the result of two events. Firstly, it is the company’s departure from excess cash, which is a “dead” weight. The second and most likely reason for the share buyback is a necessary measure aimed at preventing a drop in the company’s market value.
Grayscale’s asset value has declined from a peak of $43.6 billion in November 2021, broadly reflecting the fall in the price of bitcoin and the cryptocurrency market. Recall that in 2020, DCG bought out the Luno cryptocurrency exchange.
