Marlton Issues Statement Regarding Grayscale Bitcoin Trust (GBTC) Latest Announcement

Rhea-AI Summary

Marlton, LLC, a notable investor in Grayscale Bitcoin Trust (GBTC), supports Digital Currency Group's decision to authorize the purchase of up to $750 million worth of GBTC shares. This move aims to address the significant discount between GBTC’s market price and its net asset value, according to James C. Elbaor, Managing Member of Marlton. The firm believes this action could enhance stockholder value and reinforces GBTC's position as the largest Bitcoin fund. Marlton previously called for a Modified Dutch Auction Tender Offer for GBTC shares.

Positive

• Marlton supports DCG's initiative to buy up to $750 million in GBTC shares, which may help reduce the market price discount.
• GBTC is recognized as the world's largest Bitcoin fund, indicating strong market positioning.

Negative

• None.

CHICAGO, May 3, 2021 /PRNewswire/ -- Marlton, LLC ("Marlton"), an investment management firm that holds a significant and long-term position in shares of Grayscale Bitcoin Trust (OTCQX: GBTC) ("GBTC" or the "Fund"), today commented on the decision by Digital Currency Group, Inc.'s ("DCG"), the parent company of Grayscale Investments, LLC, to authorize the purchase by DCG of up to a total of $750 million worth of shares of GBTC.

"We support this action by DCG and believe it represents a more constructive approach to alleviating the dramatic discount between the market price of GBTC shares and net asset value," said James C. Elbaor, Managing Member of Marlton. "We continue to believe GBTC maintains a competitive advantage as the world's largest Bitcoin fund, and appreciate that GBTC has recognized the need to take meaningful steps that are aligned with stockholder value creation and ensuring the best path forward." 

This latest action follows Marlton's recent call for DCG and the Board to conduct a meaningful Modified Dutch Auction Tender Offer for GBTC shares.

About Marlton, LLC

Based in Chicago, Marlton, LLC is a privately-held investment firm and family office run by James C. Elbaor. The firm has a demonstrated track record of success in investing in closed-end funds and it acquires significant ownership positions in companies and other assets where it believes long-term value can be enhanced through active ownership. Mr. Elbaor holds a B.A. from New York University and an M.B.A. from Columbia University.

FORWARD-LOOKING STATEMENTS

All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are "forward-looking statements," which are not guarantees of future performance or results, and the words "anticipate," "believe," "expect," "potential," "could," "will," "opportunity," "estimate," and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained herein that are not historical facts are based on current expectations, speak only as of the date hereof and involve risks that may cause the actual results to be materially different. Certain information included in this material is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data, and any analyses provided to assist the recipient of this material in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should also not be viewed as factual and also should not be relied upon as an accurate prediction of future results.  Marlton disclaims any obligation to update the information herein and reserves the right to change any of its opinions expressed herein at any time as it deems appropriate. Past performance is not indicative of future results. Marlton has neither sought nor obtained the consent from any third party to use any statements or information contained herein that have been obtained or derived from statements made or published by such third parties. Except as otherwise expressly stated herein, any such statements or information should not be viewed as indicating the support of such third parties for the views expressed herein.

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SOURCE Marlton LLC

FAQ

What is the recent announcement regarding Grayscale Bitcoin Trust (GBTC)?

Marlton, LLC supports DCG's decision to authorize the purchase of up to $750 million in GBTC shares to reduce market price discount.

Who is advocating the purchase of GBTC shares?

Marlton, LLC is advocating for the purchase by Digital Currency Group to benefit GBTC shareholders.

What impact could the purchase of GBTC shares have?

The purchase may alleviate the significant discount between GBTC's market price and its net asset value.

What is the stance of Marlton, LLC on the GBTC initiative?

Marlton supports the initiative and believes it aligns with stockholder value creation.

What is the significance of GBTC's market position?

GBTC is the world's largest Bitcoin fund, providing it a competitive advantage in the market.