Bitcoin News and Finance
Peter Schiff Claims Grayscale Will Sell BTC to Fund DCG’s Acquisition of GBTC Shares Rebuffed Skip to main content

Peter Schiff Claims Grayscale Will Sell BTC to Fund DCG’s Acquisition of GBTC Shares Rebuffed

Gold bug and bitcoin opponent, Peter Schiff has alleged that the Digital Currency Group (DCG)’s plan to acquire GBTC shares worth $250 million could be an indication that Grayscale Investment will be reducing the value of its AUM. In addition, Schiff claims in his tweet that “Grayscale will be selling bitcoin to help raise the cash needed to fund the buyback.”

Peter Schiff Claims That Grayscale Will Sell BTC to Fund Digital Currency Group's Acquistion of GBTC Shares Rebuffed

Schiff Rebuffed

However, the BTC opponent’s latest attacks on Grayscale are immediately rebuffed by the company’s CEO Micheal Sonneinshein. In telling off the gold bug, the CEO said:

Get your facts straight — Grayscale is not selling bitcoin to fund share repurchases.

In its statement that announced the plan to buy GBTC shares, the DCG revealed it will “use cash on hand to fund the purchases.” Additionally, Grayscale’s parent firm said “will make the purchases on the open market, at management’s discretion, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934.” However, in his tweet, Schiff, who has also become Grayscale Investment’s nemesis, contends that the planned purchase is the “result of a persistent large discount to NAV.”

Meanwhile, in the inevitable Twitter debate that followed Schiff’s remarks, one user Jeremy asks the gold bug if it, therefore, made sense for Grayscale “to buy back all of its shares to sell the physical?” Yet, in his response, Schiff claims that Grayscale only “needs to sell enough BTC to fund the number of shares it wants to buy back.” If however, the price of BTC falls, then the crypto asset management company “will need to sell more.”

Bitcoiners Respond

As expected, Schiff’s latest remarks about Grayscale Investments’ have also sparked a quick and furious response from bitcoiners on Twitter. For instance, in his response to Schiff’s comments, crypto analyst Willy Woo simply posts a chart that juxtaposes the performance of gold next to that of GBTC.

Peter Schiff Claims That Grayscale Will Sell BTC to Fund Digital Currency Group's Acquistion of GBTC Shares Rebuffed

Meanwhile, Peter McCormack, an “ultra bitcoin holder” also commented on Schiff’s relentless opposition to BTC saying: “Imagine being so upset all the time regarding some code.”

Another user, Juan Gutierrez, responded to Schiff’s latest rant by re-posting Ray Dalio’s tweet in which the Bridgewater Associates founder attacks “people who argue against something whenever they can find something—anything— wrong with it.”

Peter Schiff Claims That Grayscale Will Sell BTC to Fund Digital Currency Group's Acquistion of GBTC Shares Rebuffed

After dropping to record levels, the discount on the GBTC has since narrowed to just under 5% at the of writing. It remains to be seen if the premium on GBTC shares can peak to levels seen in December 2020.

What are your thoughts on Schiff’s latest rants about Grayscale? You can share your views in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory