Announcing a Return to our Roots: The All-New Bitcoin Magazine

Maxim Group Bids $1.7M for GBTC Shares

by

         Maxim Group Bids $1.7M for GBTC Shares

Investors are increasing the pressure to acquire shares of the Bitcoin Investment Trust (GBTC) with a bid for 50,000 at $35 per share by the Maxim Group. Self-described as a full-service investment bank and wealth management firm, Maxim has taken the most aggressive approach as of yet to get investors in GBTC to sell their shares.

In the beginning of April, trading began for shares of the Bitcoin Investment Trust, one of the products rolled out by Barry Silbert’s new Grayscale Investments. Despite the fact that trading was possible, none have been executed.

The rules put forth by the Financial Industry Regulatory Authority (FINRA) stated that only those who have held shares in BIT for longer than a year will have the option to sell their shares on the OTCQX exchange.

There has been concern that few investors would be willing to liquidate their positions because it would be at a significant loss. Considering the rule of one year, if an investor were to have bought shares on April 1, 2014, he or she would have bought with the value of a bitcoin at $481.20. Each share of GBTC is equal to roughly 0.1 bitcoin; therefore, a bid of $35 per share is only equal to $350 per bitcoin.

This is significant premium over the current price of bitcoin, but it still at least $130 per bitcoin less than what an investor who is allowed to liquidate would have paid. However, BIT launched in September 2013, when the price of bitcoin was $130 per coin, so there could be investors looking to sell.

At present, the other firms that have made bids to acquire shares of GBTC are Puma Capital, bidding for 100 shares at $38 per share, Canaccord Genuity, bidding for 100 shares at $37.50 per share, Citadel Securities, bidding for 100 shares at $36 per share, and KCG Americas, bidding for 100 shares at $35.55 a share.

Bitcoin Magazine has reached out to Maxim Group for comment.

Photo by Rafael Matsunaga / CC BY 2.0

Recommended

Bitcoin Price Analysis: Blowing Through Support Levels on the Way to $3,000

Bitcoin continues to tumble lower and lower as it struggles to claim any footing in the market. It’s down almost 50% in three weeks and it’s showing very little sign of stopping. It’s currently clutching onto the $3,500 values but it doesn’t look like it can hold on much longer.

Bitcoin Schmitcoin

Op Ed: SEC’s Latest Declaration Creates Legal Minefield for Digital Assets

This broad, authoritative declaration is not unexpected, as, to date, the SEC has stated that all digital assets — regardless of whether they function as alt coins or utility tokens — are securities at least initially and, thus, subject to its jurisdiction.

Huhnsik Chung and Nicholas Secara

Op Ed: Cryptocurrency’s Unrealized Opportunities for U.S. Tax Professionals

Tax accountants and firms that specialize in cryptocurrency will emerge to capture and service this market. The first movers will be the ones who stand to capture the oversized profits.

David Kemmerer

Op Ed: Anatomy of the Tether Attack: Are Stablecoins Vulnerable?

Last month's attack on Tether contains a cautionary tale: Only those coins that can survive such attacks have the slightest chance of becoming the “holy grail" of stablecoins.

Henry He