Digital Currency Group (DCG), the parent company of cryptocurrency asset management company Grayscale, announced Monday that it would buy shares in Grayscale Ethereum Classic Trust for a total of $ 50 million.
This purchase uses DCG’s realizable cash and complies with Article 10b-18 of the Securities Exchange Act of 1934 (“Exchange Act”) through management’s decision to make the purchase in the open market.
The Digital Currency Group did not disclose the specific schedule of the shares acquired or specific indicators such as quantity and price. The acquisition of the shares through the authorization will depend on the achievable cash balance of the company, the price, the market sentiment and other factors.
Barry Silbert founded the Digital Currency Group in 2015, a well-known investor in the blockchain space. It owns companies such as Genesis (a global digital asset brokerage) Foundry (a leader in bitcoin mining and collateral).
Ethereum Classic (ETC) is an open source, blockchain-based distributed computing platform with smart contract functionality. It was officially launched as a hard fork of Ethereum in July 2016.
According to Coinmarketcap, the Ethereum Classic ranks 22nd largest cryptocurrency with a Market capitalization from $ 4,671,648,056.
Ethereum Classic is down 12.49% in 24 hours as China stepped up law enforcement against domestic crypto mining activities and related crypto trading.
Ethereum Classic (ETC) price hit an all-time high of $ 175 on May 6, before falling around 77% to a low of $ 38.52, which it still does today. ETC was trading at 39.85 during the intraday.
While ETC’s return has so far increased 602% from 5.68 to 39.88 so far this year, it is higher than ETHs 163% increase from 736.42 to 1943.25. Many crypto analysts view the ETC rebound as similar to the fanatical speculation of Dogecoin (DOGE) rather than a major investment based on the potential of blockchain technology.
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