Fir Tree Partners Blames Grayscale Investments for Destruction of Value for Shareholders
Posted on 12/21/2022
Hedge fund Fir Tree Partners is a shareholder of the Grayscale Bitcoin Trust (GBTC). Fir Tree Partners issued the below statement in response to Grayscale Investments’ end of year letter to investors published on December 19, 2022. Earlier in December 2022, Fir Tree filed a lawsuit in the Delaware Court of Chancery seeking information from Grayscale on potential mismanagement of and conflicts of interest at GBTC. Grayscale Investments made a proposal to buyout certain holders of GBTC. Grayscale Investments has faced setbacks multiple times in its dream to convert its bitcoin trust into an ETF. The SEC denied this conversion as citing a lack of regulatory oversight in a brief earlier in December 2022.
“Grayscale’s recent letter to investors and accompanying media campaign is unfortunately nothing more than management trying to pay lip-service to the idea that they care about their shareholders. The Company’s completely non-committal talk of a tender offer is more of what we have come to expect from Grayscale, as is them continuing to blame regulators for the damage that has been done to GBTC shareholders. In reality, Grayscale is responsible for the massive ongoing destruction of value that has occurred.
If Grayscale management is serious about protecting shareholders and about this contemplated tender offer, then they should immediately provide details on the pricing, funding source, and design of the tender offer. Instead of continuing to blame everyone else for the issues GBTC shareholders face, it is time for Grayscale to restore shareholder protections and create liquidity for investors in the near term. Fir Tree Partners is committed to taking all actions available to us to ensure that Grayscale is held accountable and finally begins to act in the best interests of all shareholders.”
Grayscale Investments is a digital currency asset management company and subsidiary of Digital Currency Group founded in 2013 and is based in New York City.
