Crypto lender BlockFi now owns over 5% of Grayscale’s Bitcoin Trust shares


Crypto lender BlockFi has purchased a sizable stake in Bitcoin Trust (GBTC) from Grayscale, according to public records.

The loan company’s holdings now represent a 5.07% stake in the trust, according to a new filing with the Securities and Exchange Commission (SEC). The SEC requires companies to report anything over 5% ownership of another company using Form 13-G.

BlockFi’s filing is signed on October 26 and records the October 15 purchase of 24,235,578 shares from the Trust. According to Grayscale’s latest annual filings, each share is worth 0.0001 BTC, which means BlockFi’s purchase is approximately 24,235.578 BTC. At current market price, this amounts to $328,040,666.02.

BlockFi CEO Zac Prince said the move was part of serving his own customers as a crypto lender.

“There are lending markets alongside the product-related investment opportunities and our significant holding allows us to add value for our clients and the liquid and illiquid GBTC equity market,” he said in a statement. communicated.

GBTC allows merchants to gain exposure to bitcoin without directly buying and holding the crypto themselves. Since its launch in 2013, it has grown to hold over 467,000 BTC for its clients, which means it manages over $6 billion in value. It has also been an SEC-registered reporting company since January, which means it files additional information with the US securities regulator throughout the year.

Three Arrows Capital bought a Bitcoin Trust stake similar to BlockFi’s in June this year, owning 6.26% of GBTC shares at the time for a $259 million purchase of 21 million shares. However, recent 8-K disclosures for the events of October 15 show that Grayscale has since issued an additional 16,900,600 shares to “selected accredited investors”.

The Trust’s BTC holdings have also trended higher in recent months.

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