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Grayscale eyes share sale if ETF plans fail

To stabilize the Grayscale Bitcoin Trust GBTC, the firm is looking for ways to get investors involved.

By Mike Hesp
• 1 min read
Grayscale eyes share sale if ETF plans fail

To stabilize the Grayscale Bitcoin Trust GBTC, the firm is looking for ways to get investors involved.

Grayscale is currently exploring the possibility of selling a portion of Grayscale Bitcoin Trust shares to shareholders if the Bitcoin Spot ETF is rejected again. Converting GBTC into an ETF could help stabilize the stock price for trading. GBTC is currently down about 50%.

In a letter obtained by the Wall Street Journal, CEO Michael Sonnenshein told investors that the options "would include a tender offer for up to 20 percent of the trust's outstanding shares worth $10.7 billion."

"With a tender offer, shareholders are invited to sell their shares over a set period at a set price," he added.

Grayscale recently sued the SEC, which rejected its bid to turn the Bitcoin Trust into an ETF in the summer.

It's unclear when a decision on the Grayscale ETF will be made. The parent company DSG and sister company Genesis are both dealing with financial troubles.

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