Grayscale Bitcoin Trust’s Stockholder Not Happy About Persistent Discount

Grayscale Bitcoin Trust’s Stockholder Not Happy About Persistent Discount
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Alex Dovbnya

A Chicago-based Grayscale Bitcoin Trust stockholder is demanding a tender offer as shares continue to trade at a discount

Chicago-based investment firm Marlton LLC is going after Grayscale due to the shares of the asset manager’s Bitcoin Trust slipping into discount territory.

According to an April 6 Bloomberg report, the family office is now demanding a tender offer to sell its stock at a higher price.

It is unclear how many shares Marlton has in its coffers.

“Destruction of value”

Grayscale Bitcoin Trust, the popular institution-oriented investment vehicle with over $38.1 billion worth of BTC under management, has now been trading at a discount to net asset value for well over a month, raising questions about the product’s future.

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As reported by U.Today, the asset managed recently confirmed that it was seeking the blessing of the U.S. Securities and Exchange Commission to convert GBTC into an exchange-traded fund.

Such a prospect does not sit well with Marlton’s James Elbaor, who accuses the trust of destroying the stock value:

We are frustrated that the board might allow management to squander the company’s leading market share to the detriment of GBTC stockholders, whilst simultaneously rewarding yourselves handsomely with a profligate, market-leading, 2% management fee.

editorial staff