Osprey Bitcoin Trust has revealed that it is currently engaged in discussions regarding a potential sale or merger. If these discussions do not yield any fruitful results, the trust will proceed with its deregistration and subsequent liquidation within a span of 180 days.
The trust has acknowledged that fractional units of its BTC trust are currently trading at a discount compared to the value of Bitcoin (BTC). As a result, Osprey is exploring various options to maximize the value for its unitholders. Interestingly, the announcement alone has already had a significant positive impact on the unit price. After closing at $15.98 on March 4, the unit price skyrocketed to $20.68 on March 5, before settling at $19.17 at the time of writing.
In a recent statement on X (formerly Twitter), Osprey’s founder and CEO, Greg King, discussed the company’s efforts to achieve positive financial outcomes. The company had previously filed Form 8-K with the United States Securities and Exchange Commission (SEC) on January 11, informing the agency of its plans to hold a tender for the purchase of 20% of its units at the net asset value, minus taxes and fees. However, King admitted that this proposal did not receive the desired response from Osprey’s stakeholders and expressed the company’s exploration of alternative options.
Osprey entered the market as a competitor to the much larger Grayscale when it launched its BTC trust over-the-counter in January 2021. The trust aimed to offer accredited investors exposure to BTC within brokerage accounts. Unfortunately, the trust faced significant challenges during the crypto winter, resulting in the layoff of a majority of its employees by January 2023.
Furthermore, Osprey filed a lawsuit against Grayscale in January 2023, alleging that Grayscale’s dominant market share of approximately 99.5% in a two-participant market was solely due to false and misleading advertising and promotion.
In addition to its BTC trust, Osprey also provides over-the-counter trusts for Polkadot (DOT) and Solana (SOL), as well as a private placement BNB Chain Trust (BNB).
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