TechFlow news — Messari founder and CEO Ryan Selkis stated on his Twitter that due to Rule 144A under the U.S. Securities Act of 1933, issuers conducting mandatory over-the-counter (OTC) transactions face two restrictions: they must provide advance notice of proposed sales, and are limited to selling no more than 1% of the outstanding shares per quarter or based on weekly trading volume. As a result, Genesis Global and Digital Currency Group (DCG), the controlling shareholders of GBTC, cannot simply "dump" their holdings to raise additional capital. He added, "This is also good news for GBTC shareholders and the fight against FUD."
According to Selkis' calculations, based on outstanding shares, up to $62 million can be liquidated per quarter, while under the trading volume test, only up to $23 million per quarter can be liquidated. Therefore, DCG and Genesis are more likely to use GBTC shares as collateral for DCG-Genesis refinancing. Recently, market fears over potential GBTC liquidation by Genesis and DCG have triggered declines in BTC price. Source link
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