Crypto Cockroaches Continue to Scurry as Grayscale Officially Files for IPO (Shocker)

By Stocks News   |   1 week ago   |   Stock Market News
Crypto Cockroaches Continue to Scurry as Grayscale Officially Files for IPO (Shocker)

I can’t say I’m surprised….

While everyone has been dealing with PTSD over the McGraw-Hill IPO talk, crypto twitter is going haywire as Grayscale has quietly filed for one also. Translation: It’s abundantly clear that crypto IPOs are skittering out of the baseboards like cockroaches under fluorescent lights… Circle, Gemini, and now Barry Silbert’s digital spawn, Grayscale, which apparently decided that if Bitcoin’s gonna keep teasing new all-time highs, it might as well pass around the collection plate while the congregation’s still speaking in tongues.

Image 1

(Source: Giphy) 

In short, Grayscale manages $33 billion in assets, spread across over three dozen crypto products… including the legendary (read: controversial) Grayscale Bitcoin Trust. And now the O.G. crypto asset manager is back sniffing around Wall Street’s pockets, filing confidentially for an IPO like it’s some sexy forbidden secret. Spoiler: it’s not. Of course, they haven’t decided how many shares to sell or at what price, because of course they haven’t. That’s how you maintain mystique when your core business model is literally tracking Bitcoin’s mood swings. 

Image 2

(Source: Yahoo Finance) 

For more context,  Grayscale is the same crew that fought the SEC in court to turn GBTC into a spot ETF, only to watch BlackRock (a.k.a. Mr. Steal Yo Girl) slide in with IBIT and triple the assets like it’s nothing So congratulations, Grayscale, you invented the market, and now you’re that sad guy at the party explaining how he “knew about Bitcoin in 2012” while everyone else is taking selfies with Larry Fink.

And yet, somehow, this is perfect timing. Again, this filing comes hot on the heels of Circle’s $1.1 billion IPO and the Winklevoss twins trying to squeeze themselves back into relevance via Gemini’s own confidential filing. Meanwhile, Bitcoin’s brushing up against $122,000, and everyone’s acting like they’ve never seen volatility before… despite the fact that two years ago people were trading Bored Apes as if they’d replace the U.S. dollar. 

Image 3

(Source: Giphy) 

As for the financials… the IPO is definitely understandable. Grayscale’s revenue is growing. Case in point:  For the fiscal year ending March 2024, Grayscale’s parent DGC (Digital Currency Group) reported $156 million in revenue from Grayscale alone, out of $229 million total. That’s a chunky piece of the pie. And now, considering Bitcoin is breaking the 4th wall of every skeptic's subconscious (including mine), Grayscale smells the money. 

As for the bad part, they’re kinda late to the party. The confidential filing means they don’t have to tell us yet how many shares they’re selling or what the valuation will be… but you can bet they want a fat a$$ multiple on that $33 billion AUM. The problem is that BlackRock’s IBIT already kicked them in the teeth, tripling GBTC’s assets in months and charging a microscopic 0.25% fee compared to GBTC’s 1.5%. Translation: the entire business is under pressure from lower-cost competitors, and that sweet management-fee gravy train is getting guillotined. 

Image 4

(Source: Giphy) 

Additionally, Grayscale has a bit of baggage tied to them… (specifically the DCG drama). Perhaps you’ve heard, but DCG’s lending arm, Genesis, imploded and scared the absolute piss out of the crypto world. And guess what? That stench still lingers. Naturally, Grayscale has been trying to  distance itself, but it’s still the crown jewel of Barry Silbert’s empire…  meaning, you’d better believe any IPO prospectus will have a five-page risk disclosure about “affiliates under distress.”  In the end, this could potentially be a big swingin’ IPO in the making. However, while crypto’s roaring now, the sector’s volatility remains savage. This whole IPO pitch leans heavily on the idea that Bitcoin and other digital assets will keep climbing. If crypto stumbles or regulators pull a new anti-crypto rabbit out of their hat… Grayscale’s business model could look a lot less bulletproof. Resulting in a massive rug-pull on IPO day. 

So yeah, Grayscale is getting into the market. They’re big, they’re relevant, and they’ve got legit credentials. But cheaper competition, the DCG baggage, and crypto’s eternal volatility mean this could either be a monster win or another ticker investors look back on and mutter, “Well… f*k.” Of course, only time will tell, but for now keep your head on the swivel, keep your eyes on this story, and place your bets accordingly. Until next time, friends… 

Image 5

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.

Did you find this insightful?

Disclaimer: Information provided is for informational purposes only, not investment advice. We do not recommend buying or selling stocks. Stock price discussions are based on publicly available data. Readers should conduct their own research or consult a financial advisor before investing. Owners of this site have current positions in stocks mentioned thru out the site, Please Read Full Disclaimer for details Here https://app.stocks.news/page/disclaimer