A notorious antagonist of Bitcoin, Peter Schiff, who is also known as Gold Bug, has claimed that before the acquisition of Grayscale’s shares by Digital Currency Group, Grayscale will try to decrease the value of Bitcoin. How would Grayscale do that, is by selling off Bitcoins and artificially increasing the value of its shares for enabling Grayscale to come with boosted buyback power, said Schiff?
In the recent past, Digital Currency Group (DCG) had announced that it would soon be acquiring the shares of Grayscale Investments. Yet, the news of acquisition did not appeal to everyone, especially to the Gold bug, Peter Schiff.
Schiff’s antagonism towards Bitcoin is apparent since the very first digital currency of the world came into being. If there is a slight chance of criticizing Bitcoin or its supports, Schiff has always gladly taken it. Even the major crypto players’ scuffle with Schiff is not something that could be seen rarely. In fact, it is very often when Bitcoin fans and Schiff found engaged in an exchange of words over Bitcoin at social media networks.
Since DGC has announced the acquisition of Grayscale’s shares, Schiff has been trying to criticize Grayscale Investment one way or the other. In his recent criticism, Schiff predicted that Grayscale will try its best to technically lower the value of Bitcoin. He further claimed that in order to do that Grayscale will soon be selling off some portion from its Bitcoin reserves. According to him, such a strategy will enable Grayscale to have boosted buyback power. While the value of its shares would also go up significantly.
Feeling aggrieved, Grayscale’s CEO, Michael Sonneinshein, came in aid of the company and responded to the allegations of Schiff. In his tweet, Sonneinshein openly criticized Schiff and advised him to be optimistic and correct his facts and be understanding. He categorically denied having any thought in which the company is going to sell any or some of Bitcoins under its management. He also denied that the company is trying to boost the value of its shares by any means whatsoever.
When DCG revealed of acquiring shares of Grayscale, it apprised that the acquisition will be done on the basis of cash in hand, while Grayscale disclosed that the selling of shares will be carried out in an open market. In this way, the company will ensure compliance with mandatory rules prescribed under the Securities laws of the US.
But Schiff has been playing the role of being a nemesis to Grayscale as he could jeopardize the proposed deal. He was found contending later on that the deal is part of the bargain wherein discount has been leveraged to NAV. He is still bent upon propagating his self-acclaimed agenda while provoking Grayscale Investment.