Fir Tree Partners, a major shareholder in Grayscale Bitcoin Trust (GBTC), and Grayscale Investments have reached an agreement to settle a lawsuit filed by Fir Tree in December 2022. The lawsuit sought documents and information from Grayscale about possible mismanagement and conflicts of ownership. interest in GBTC.

The lawsuit highlighted Fir Tree’s concerns about Grayscale’s refusal to allow redemptions despite no relevant regulatory restrictions, GBTC’s extensive conflicts of interest and lack of independent oversight, and its campaign to convert GBTC into an ETF. .

Under the terms of the settlement, Grayscale agreed to voluntarily produce certain books and records in response to Fir Tree’s lawsuit. In exchange, Fir Tree agreed to dismiss its books and records litigation against Grayscale.

Despite this agreement, Fir Tree expressed disappointment that Grayscale management refused to honor Fir Tree’s information rights for months and has yet to address concerns about GBTC’s structure and unavailability of refunds.

Fir Tree has proposed a simple solution for GBTC, suggesting that Grayscale allow the redemption of GBTC’s outstanding shares so that shareholders can recoup a portion of their investment. This proposal has been repeatedly rejected by Grayscale over the past eight months.

In March 2023, Fir Tree proposed a workaround: for Grayscale to make a public offer for a significant percentage of GBTC’s outstanding shares. This proposal was also rejected by Grayscale and DCG.

Fir Tree believes that a public offer could unlock significant value for shareholders of GBTC, DCG and Genesis creditors. For example, if Grayscale were to make a public offer for 20% of the outstanding shares at 94% NAV, it could potentially unlock $3.6 billion in immediate value for GBTC shareholders who participate in the public offer.

Fir Tree urges Grayscale to act in the best interest of all GBTC shareholders and finally commit to a long overdue public offering to unlock billions in immediate value for all shareholders participating in an offering.

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