Tarnished Silbert Facing Bitcoin Investors Revolt

in crypto •  2 years ago 

Barry Silbert is Now Broke

awww... has the tribe abandoned him?

Crypto Broker Genesis Cuts 30% Of Staff, Reportedly Mulls Bankruptcy

We estimate Silbert, worth $3.2 billion as of last April, to now be worth $0, largely due to Genesis’ mountain of debt.

Now for the fun part...

GBTC Shareholders Revolt Against Barry Silbert

Barbarians Are at Grayscale’s Gates. Can They Take Over GBTC?

The nuclear option: Oust the DCG portfolio company from its mandate as investment manager of the $10.7 billion bitcoin trust.

This is really quite simple. You run a Bitcoin trust. You skim off 2% fees per year for doing very little - to the tune of some $210m pa. The price drops, so, OK, investors have lost value, but the Bitcoins are still there, right? Right!?

Genesis and Grayscale are both part of DCG. Smells very similar to FTX, where greed backfired. I'm sure those fees have left the building.

The tribe is not usually so clumsy at usury, but notice how intertwined they all are, so that the real losers are everybody else, and the real game is not about slicing up some cake but to control the whole bakery.

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  ·  2 years ago  ·  

UPDATE
DCG Shareholder Letter from Barry Silbert, Founder & CEO
https://dcgupdate.com/

  ·  2 years ago  ·  

Trying to fill one hole still leaves another hole somewhere.

  ·  2 years ago  ·  

The Blockworks article is very good, going into details of options, both legal and financial.
https://blockworks.co/news/gbtc-takeover-attempts-explained
The trust must be hiding something. Their standard response seems like refusing to open the box until it is presented in new wrapping paper - an ETF. But the SEC's repeated refusals may have reduced the premium to NAV, but that wouldn't cause the steep discount.

  ·  2 years ago  ·  

GBTC Leverage Death Rattle? With Steven McClurg

Steven McClurg is a Co-Founder of Valkyrie Investments that is spearheading the GBTC revolt.

  ·  2 years ago  ·