Osprey Bitcoin Trust (OBTC) earlier has announced the termination of its tender offer to buy back up-to 20% percent outstanding shares as a result of fear raised by SEC on pricing structure.
Based on the report, SEC argued that the offer didn’t follow their interpretation of Rule 13e-4, which should have an expiration date before. However, as per Osprey this change would have disadvantaged the tendering or non-tendering shareholders and does not reflect on what Trust’s principal is; which was to mirror the performance of Bitcoin.
Osprey CEO Greg King was dumbfounded and puzzled as to what gives in the SEC standing, considering how other closed-end funds used similar structures. The company will also seek other alternatives while ensuring that the shareholders’ interests are first.
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