NEW YORK, Jan. 13, 2020 (GLOBE NEWSWIRE) -- Grayscale Investments®, the world’s largest digital currency asset manager and sponsor of Grayscale® Bitcoin Trust (OTCQX: GBTC) (the "Trust"), today announced that the Trust will resume the private placement of its shares. The Trust’s private placement is offered on a periodic basis throughout the year and is now currently available to accredited investors for daily subscription.
The Trust’s investment objective is for the value of its shares (based on Bitcoin per share) to reflect the price performance of Bitcoin, less fees and expenses. The Trust is solely and passively invested in Bitcoin and was created for investors seeking exposure to Bitcoin through a traditional investment vehicle. As of January 10, 2020, the Trust has more than $2.06 billion in assets under management (AUM) and each share of the Trust represents 0.00096884 Bitcoin.
Following a one-year holding period, shareholders who invest in the private placement may elect to sell their shares at prices dictated by the market under the symbol: GBTC.* Because the Trust does not currently operate a redemption program, there can be no assurance that the value of the shares will approximate the value of Bitcoin held by the Trust, less the Trust’s expenses and other liabilities, and the shares may trade at a substantial premium over, or a substantial discount to, the value of Bitcoin held by the Trust, less the Trust’s expenses and other liabilities.
The Trust is a traditional investment vehicle with shares titled in the investor’s name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws. Additionally, shares are eligible to be held in certain IRA, Roth IRA, and other brokerage and investor accounts.
The private placement shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and the shares are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in the shares of the Trust is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation D under the Securities Act.
As a result, the shares are restricted shares and are subject to a one-year holding period in accordance with Rule 144 under the Securities Act. Because of the one-year holding period and the lack of an ongoing redemption program, shares should not be purchased by any investor who is not willing and able to bear the risk of investment and lack of liquidity for at least one year. No assurances are given that after the one-year holding period, there will be any market for the resale of shares, or, if there is such a market, as to the price at which such shares may be sold into such a market. Qualified investors should refer to the Trust’s private placement memorandum, which is available from Grayscale at info@grayscale.co, for a discussion of these and other risks.
For more information, please visit: https://grayscale.co/investors/.
*Grayscale Investments has publicly filed a Registration Statement on Form 10 with the Securities and Exchange Commission on behalf of Grayscale Bitcoin Trust. If deemed effective, the current 12 month holding period would be reduced to 6 months, provided the other requirements under Rule 144 of the Securities Act have been satisfied. For more information, we encourage you to view our FAQs here.
This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Grayscale Investments®
Grayscale Investments, LLC is the world’s largest digital currency asset manager, with more than $2.0B in assets under management. With a proven track record and unrivaled experience, we give investors the tools to make informed investing decisions in a burgeoning asset class. As part of Digital Currency Group, Grayscale accesses the world’s biggest network of digital currency intelligence to build better investment products. We have removed the barrier to entry so that institutions and investors can benefit from exposure to digital currencies. Now, forward-thinking investors can embrace a digital future within an institutional grade investment. Grayscale is headquartered in New York City. For more information on Grayscale, please visit www.grayscale.co or follow us on Twitter, @GrayscaleInvest.