2024

Million

Grayscale Bitcoin Trust

Digital Currency Group, the parent company of Grayscale, just released its Q1 revenue report and recorded an 11% spike in revenue.
Grayscale’s parent company, Digital Currency Group (DCG), reported a revenue jump to $229 Million in the first quarter of 2024. The sharp rise in the value of digital assets, including Bitcoin (BTC) and Ether (ETH), is a major reason behind DCG’s revenue surge.
Foundry, DCG Subsidiary, and Luno, a global cryptocurrency company also reported substantial earnings.
<h2 class="wp-block-heading" id="strong-what-does-digital-currency-group-s-revenue-report-say-strong">What Does Digital Currency Group’s Revenue Report Say?&nbsp;</h2>
DCG observed an 11% climb in its revenue for the first quarter of 2024, reaching $229 Million. According to the letter to shareholders, this increase was primarily driven by the spike in asset values.
CoinDesk took to X to announce Digital Currency Group’s Q1 2024 earnings report.&nbsp;
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 Digital Currency Group, the parent company of <a href="https://twitter.com/Grayscale?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@grayscale</a>, reported $229M in revenue in the first quarter, up 11% from Q4 as crypto prices rallied in the beginning of the year. <a href="https://t.co/qZmAVe9TOO" rel="noopener noreferrer nofollow">https://t.co/qZmAVe9TOO</a>— CoinDesk (@CoinDesk) <a href="https://twitter.com/CoinDesk/status/1788799364984442933?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 10, 2024</a>
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Even with a notable 60% hike in Bitcoin’s value during the same timeframe, DCG’s revenue increase didn’t match the pace. The company’s communication pointed to reduced sponsor fees for GBTC and redemptions.
Moreover, the shareholder update shed light on Foundry’s revenue, which saw a 35% jump from the previous quarter. Here, increased staking and sales of mining equipment acted as a catalyzer.&nbsp;
Luno, on the other hand, reported a 46% increase in sales on a quarter-over-quarter basis, supported by increased trading volume.
<h3 class="wp-block-heading" id="strong-a-short-talk-on-grayscale-bitcoin-trust-gbtc-strong">A Short Talk On Grayscale Bitcoin Trust (GBTC)</h3>
Grayscale is one of the world’s prominent crypto asset managers offering sport Bitcoin ETF. On May 9, the 11 spot Bitcoin ETF documented over $11.29 Million in total daily new outflows.
However, Grayscale’s GBTC experienced net outflows on the same day.&nbsp;
According to Coinglass data, GBTC was valued at $55.57 with a total volume of $359.32 Million and over 327.89 Million in shares outstanding. With a market cap of $18.22 Billion and $18.22 Billion in assets under management (AUM), GBTC secured the top position.
From the very first day of ETF approval, GBTC’s total<a href="https://www.thecoinrepublic.com/2024/01/26/tesla-held-onto-its-bitcoin-btc-holdings-in-q4-2023/" target="_blank" rel="noopener noreferrer nofollow"> BTC holdings </a>were 617.08K on January 13, and on April 6, the total holdings recorded at 325.69K. The data signifies a continuous drop in the total BTC holdings.
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 <figure class="aligncenter"><img decoding="async" src="https://lh7-us.googleusercontent.com/Wzu_LtzL4NBhvtSHW7wI9AK-k3K3GD9jfXMw96GvopxbEre-GdtQeAqcLp2bbfG7Ybh8qLAXZsuTH6YtdFCjlmxuSD2g3gF7vyNDGyp1Z--Zrt0j9Ueg_Co7rzjb_yo9OW0jnbzfo6ZLz7Ph1IqqMTs" alt="">
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Grayscale Investments BTC Holdings I Source: Coinglass&nbsp;
Despite top-level performance, GBTC didn’t perform well in inflows, indicating investors are least interested in investing in the respected spot BTC ETF.
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 <figure class="aligncenter"><img decoding="async" src="https://lh7-us.googleusercontent.com/Rcmtq9Sn2BdbhguV95lUCfSLAQXvr5K-dMFL3-xfQA_lzYB1ai8JFI72pqA6WCLQwA_-r7YcKcA1WLGgVvaGSjC7d-wS5CJJuumsEEN2RacP46BmW28B_0L3VDx9wGGl47tsVnJSzEqi1zBaw58a5CA" alt="">
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GBTC Total Bitcoin Spot ETF New Inflow I Source: Coinglass
A drop was observed in the inflows on 8 May 2024, hitting the outflow to $28.21 Million. However, it wasn’t shocking as GBTC had already been in the outflow phase for a long time. This implies that institutions are not ready to purchase BTC at the prevailing price.

Digital Currency Group Reported 11% Revenue Surge In Q1 2024

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