Fir Tree Comments on Grayscale’s End of Year Investor Letter and Non-Committal Talk of a Tender Offer

NEW YORK--(BUSINESS WIRE)--Fir Tree Partners (“Fir Tree” or “we”), a meaningful shareholder of the Grayscale Bitcoin Trust (“GBTC”), today issued the below statement in response to Grayscale Investments’ (“Grayscale” or the “Company”) end of year letter to investors published on December 19, 2022. Earlier this month, Fir Tree filed a lawsuit in the Delaware Court of Chancery seeking information from Grayscale on potential mismanagement of and conflicts of interest at GBTC.

“Grayscale’s recent letter to investors and accompanying media campaign is unfortunately nothing more than management trying to pay lip-service to the idea that they care about their shareholders. The Company’s completely non-committal talk of a tender offer is more of what we have come to expect from Grayscale, as is them continuing to blame regulators for the damage that has been done to GBTC shareholders. In reality, Grayscale is responsible for the massive ongoing destruction of value that has occurred.

If Grayscale management is serious about protecting shareholders and about this contemplated tender offer, then they should immediately provide details on the pricing, funding source, and design of the tender offer. Instead of continuing to blame everyone else for the issues GBTC shareholders face, it is time for Grayscale to restore shareholder protections and create liquidity for investors in the near term. Fir Tree Partners is committed to taking all actions available to us to ensure that Grayscale is held accountable and finally begins to act in the best interests of all shareholders.”

About Fir Tree Partners

Fir Tree was founded in 1994 and is a New York based private investment firm that invests worldwide in public and private companies, real estate and sovereign debt. Fir Tree manages assets on behalf of leading endowments, foundations, pension funds and sovereign wealth funds. Where shareholder engagement could be value-accretive for its investors, Fir Tree follows a Positive Activism® approach in creating, not just identifying, value.