Peter Schiff Claims Grayscale Will Sell BTC to Fund DCG’s Acquisition of GBTC Shares Rebuffed – Markets and Prices Bitcoin News

Gold Bug and bitcoin denier Peter Schiff argues that Digital Currency Group’s (DCG) plan to acquire $250 million of GBTC shares could be a sign that Grayscale Investment will downgrade the value of its AUM. Furthermore, Schiff states in his tweet that Grayscale will sell bitcoins to raise the money for the buyout.

Peter Schiff Claims Grayscale Will Sell BTC to Fund DCG’s Acquisition of GBTC Shares Rebuffed – Markets and Prices Bitcoin News

The shipis taking revenge with the.

However, BTC’s recent attacks in the grey area are immediately contradicted by Michel Sonnenschein, the company’s CEO. Referring to the Golden Beetle, the CEO said:

Don’t get me wrong, Grayscale is not selling bitcoins to buy back shares.

In a statement announcing the proposed purchase of GBTC shares, DCG said it would fund the purchase in cash. In addition, Grayscale’s parent company has stated that it will make purchases in the open market at management’s discretion, pursuant to Rule 10b-18 under the Securities Exchange Act of 1934. In his tweet, however, Schiff, who has also become a nemesis of Grayscale Investment, says the proposed purchase is the result of a significant permanent discount to net asset value.

In the inevitable Twitter debate that followed Schiff’s comments, one user asks Jeremy if this is why it makes sense for Grayscale to buy back all its shares to sell physical shares? In his response, however, Schiff says Grayscale only needs to sell enough BTC to fund the number of shares it wants to buy back. However, if the price of BTC falls, the company that manages the cryptocurrency will have to sell more.

Bitcoiners respond

As expected, Schiff’s latest comments on Grayscale Investments also prompted a swift and furious response from bitcoiners on Twitter. For example, in his response to Schiff’s comments, cryptocurrency analyst Willie Wu simply presents a chart comparing gold’s performance to GBTC’s.

Peter Schiff Claims Grayscale Will Sell BTC to Fund DCG’s Acquisition of GBTC Shares Rebuffed – Markets and Prices Bitcoin News

Meanwhile, Peter McCormack, an ultra-bitcoin holder, has also commented on Schiff’s fierce opposition to BTC: Imagine being frustrated by a code all the time.

Another user, Juan Gutierrez, responded to Schiff’s latest tirade by reposting Ray Dalio’s tweet in which the Bridgewater Associates founder lashed out at people who oppose something as soon as they can find something – anything wrong.

Peter Schiff Claims Grayscale Will Sell BTC to Fund DCG’s Acquisition of GBTC Shares Rebuffed – Markets and Prices Bitcoin News

After falling to record levels, the GBTC discount has since been reduced to just under 5% at the time this article was written. It remains to be seen whether premiums for GBTC shares can peak in December 2020.

What do you think of Schiff’s latest rant on Grayscale? You can share your thoughts below in the comments section.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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