Messari founder: Due to securities law restrictions, the GBTC liquidation of Genesis and DCG cannot create "selling pressure."

2022-11-29 08:51:19

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ChainCatcher news, Messari founder and CEO Ryan Selkis stated in a tweet that due to Section 144A of the 1933 U.S. Securities Act, issuers of over-the-counter (OTC) trading entities are required to comply with two restrictions: advance notice of proposed sales and a quarterly sales cap of 1% of the outstanding shares or weekly trading volume. Therefore, the major shareholders of GBTC, Genesis Global and Digital Currency Group, cannot simply "dump" their holdings to raise more funds. He mentioned, "This is also good news for GBTC shareholders and the fight against FUD."

According to Selkis's calculations, based on outstanding shares, a maximum of $62 million can be liquidated per quarter, while based on trading volume tests, a maximum of $23 million can be liquidated per quarter. Thus, DCG and Genesis are more likely to use GBTC as collateral for DCG-Genesis refinancing. Recently, market panic over Genesis and DCG liquidating GBTC has caused a drop in BTC prices. (source link)

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Genesis DCG Grayscale CBTC

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