Massive Crypto Move: Genesis Snags 32,000 Bitcoins from Grayscale Shares Sale – How Did They Do It?

Genesis, a bankrupt crypto lender, has recently made a strategic move to boost returns for its creditors by delving into Bitcoin investment. In February, the company received court approval to liquidate its considerable stash of Grayscale shares, aiming to fetch over $1 billion.

Genesis Offloads GBTC Shares for Profit, Invests in Bitcoin Amidst Bankruptcy Plan

Court documents unveiled Genesis' successful sale of its Grayscale Bitcoin Trust (GBTC) shares, amounting to 36 million shares, each valued at approximately $58.50 during the sale. Capitalizing on this, Genesis swiftly reinvested the proceeds, purchasing over 32,000 bitcoins worth $2.1 billion based on a token price of $65,845.

The move aligns with Genesis' bankruptcy plan, offering creditors the choice between converting GBTC shares into bitcoins or selling them outright for cash distribution. This proactive approach places Genesis in a favourable position, leveraging Bitcoin's potential growth, projected to hit $80,000 by year-end.

While Genesis anticipates a promising turnaround, with Bitcoin's bullish trajectory in sight, the company remains burdened by debts exceeding $3.5 billion. Approval for a repayment plan from the bankruptcy court is pending.

Genesis Responds to DCG Review with Creditor Payments, SEC Fine, and Bitcoin Strategy for Recovery

Genesis faces scrutiny from DCG, with concerns raised about creditor compensation. DCG asserts that Genesis' plan could result in lenders receiving considerably more than initially claimed.

Genesis plans to pay a $21 million fine to the SEC upon full creditor repayment, emphasizing its commitment to regulatory compliance amidst its financial restructuring.

Genesis' strategic shift towards Bitcoin investment not only serves as a hedge but also underscores its dedication to maximizing returns for creditors and achieving full debt repayment. However, lingering debt and regulatory obligations pose ongoing challenges for the company's financial recovery.