Cryptocurrency lending platform BlockFi now holds more than 5% of the shares in Grayscale’s Bitcoin Trust (GBTC).
According to a new filing with the U.S. Securities and Exchange Commission signed on October 26, BlockFi has purchased a considerable stake in Grayscale’s bitcoin Trust. The report shows the lending firm holds a 5.07 percent ownership in the Trust, with the purchase of 24,235,578 shares from the Trust on October 15.
Grayscale’s most recent annual filing pegs each share in the Trust at 0.0001 BTC, making BlockFi’s investment worth a whopping 24,235.578 BTC ($332 million).
Under the regulations of the SEC, companies are required to report any holding over 5 percent ownership in another company using the 13-G form.
In an accompanying announcement, BlockFi CEO Zac Prince said the investment would better serve customers of the lending platform.
He wrote,
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.
Grayscale’s GBTC allows traders to gain exposure to bitcoin without holding the crypto directly.
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