BlockFi Acquires a 5% Stake in the Grayscale Bitcoin Trust (GBTC), Becomes a Top Shareholder
BlockFi, the crypto lending focused firm, has invested in the Grayscale Bitcoin Trust (GBTC), becoming one of the biggest shareholders. According to a filing made with the U.S Securities Exchange Commission (SEC), the firm purchased 5.07% of the GBTC Trust. Notably, companies in the U.S are required to report through form 13G if they own more than 5% in another firm.
The filing further reveals that the shares acquired by BlockFi translate to 24,235,578 of the GBTC Trust. Going by the latest Grayscale annual filings, this value is roughly 24,235.578 Bitcoins, given that every share is priced at 0.0001 BTC. As per the prevailing crypto market prices, the BlockFi investment in GBTC is roughly $328 million.
GBTC has been operational since 2013, pivoted as a Bitcoin buying avenue without owning the underlying crypto themselves. Currently, the firm manages an AUM of over $6 billion, acquiring an SEC license earlier in the year. In recent months, its value has been growing exponentially, with Q3 inflows breaking record highs to hit the $1 billion mark.
The CEO of BlockFi, Zac Price, said that the move to invest in GBTC is part of an effort to serve their clients better,
“There are lending markets alongside investment opportunities related to the product, and our significant participation enables us to add value for our clients and the marketplace for liquid and illiquid GBTC shares.”
BlockFi is not the only crypto-focused firm that has acquired a significant share of the GBTC Trust; back in June, Three Arrows Capital bought 21,057,237 shares, roughly 6.26% of the total trust at the time.