Bitcoin Investment Trust Announces Record Date for Distribution of Bitcoin Cash and Remittance of Cash Proceeds

NEW YORK, Oct. 25, 2017 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (OTCQX: GBTC) (the "Trust"), announced that it has today declared a distribution and established a record date for the distribution of all of the Bitcoin Cash currently held by the Trust to shareholders of record ("Record Date Shareholders") as of the close of business on November 6, 2017 (the "Record Date").

On the Record Date, pursuant to the terms of the Trust Agreement governing the Trust, the Trust will appoint Grayscale Investments, LLC as agent (the "Agent") on behalf of the Record Date Shareholders and transfer the Bitcoin Cash held by the Trust to the Agent on behalf of the Record Date Shareholders. The Agent will thereafter sell the Bitcoin Cash over a period of time, currently not expected to exceed 90 days, and remit the cash proceeds from such sale, net of any administrative and other reasonable expenses incurred by the Agent in connection therewith, to Record Date Shareholders upon completion of the sale. The Agent will announce a remittance date for the remittance of such net cash proceeds once established. Notwithstanding the foregoing, the Agent reserves the right to remit any net cash proceeds from such sale prior to the completion thereof, in more than one remittance.

Based on 1,868,700 shares of the Trust outstanding as of the date hereof and expected to be outstanding as of the Record Date, each share of the Trust will entitle the holder to receive approximately 0.09258535 coins (or units) of Bitcoin Cash, prior to the deduction of any administrative and other reasonable expenses incurred by the Agent related to the eventual sale of the distributed Bitcoin Cash. Bitcoin Cash currently trades in multiple venues, which have reported widely fluctuating values for Bitcoin Cash since its introduction on August 1, 2017, and as a result of this volatility it is not possible to predict the value of Bitcoin Cash to be distributed as of the Record Date. On October 24, 2017, venues were reporting intraday trading prices for Bitcoin Cash from as high as approximately $340 per coin to as low as approximately $310 per coin (or their approximate equivalents in other fiat or digital currencies), although there is no assurance that prices in this range (before deduction of expenses) would have been realizable had the Bitcoin Cash currently held in the Trust been liquidated on such date. As a result, there can be no assurance as to the price or prices for Bitcoin Cash that the Agent may realize, and the value of Bitcoin Cash may increase or decrease after any sale of Bitcoin Cash by the Agent.

Record Date Shareholders are advised to consult with their advisors as to the tax consequences of the foregoing.

About Grayscale Investments, LLC
Founded in 2013, Grayscale Investments, LLC is a wholly-owned subsidiary of Digital Currency Group, Inc., which builds and supports bitcoin and blockchain companies by leveraging its insights, network, and access to capital. A trusted authority on digital currency investing, Grayscale provides market insight and investment exposure to the developing digital currency asset class. Grayscale is the sponsor of the Bitcoin Investment Trust and Ethereum Classic Investment Trust.

Grayscale Investments, LLC is headquartered in New York City. www.grayscale.co

 

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SOURCE Grayscale Investments, LLC

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