Bitcoin Fund Units Class A T.QBTC

Golden Goose

[FrozenInOntario]

Understand that these guys wants to boost their management fee by issuing as many shares that they can when bit coin is popular.   This is why they are please to annonce offering after offering.

Howeve, by issuing at NAV when the stock is trading at a premium, this means that there is a transfer of value from current shareholders to current buyers of the issuance.   Typically, a close end fund would offer rights to current shareholders to raise capital and current shareholders by partipating would benefit or at least not loose the premium.

Anyway, this might be legal but not very ethical.  Would not be surprised if management was participating with these offerings.

And, by doing this on a repetitive basis, the premium will eventually die and offering might be a bit more difficult to do.   Anyway, they are not setting themselves up to scale up their business by treating shareholders this way

GLTA

[Moogul]

I agree. My take exactly. I hope they don't continue to do this or somehow change their methodology as you say. If they continue to do this I will take my holdings to GBTC instead. 

[Lawyerup]

Correct me if I am wrong but my take is the holders of the issue get an unreal discount then can resell to retail investors for a quick 20+% gain.  It may be legal but sure smells fishy.  When I see things like this going on it brings into question if I want to continue to hold my position here.  The US GBTC seems a better option now.  Just my two cents, Charlie.

[Moogul]

Yes and no. They can only flip their shares once the deal closes. But some people would sell there current shares at a premium, on announcement, then buy the newly issued shares. They should make issues share holders hold for a 1-3 month period. Or sell them shares at 50% premium.  regardless now we get to see if the opposite is true... these people who got shares at NAV nuetral on 2 days