Genesis, a bankrupt crypto lending firm, has reportedly sold 36 million shares of Grayscale Bitcoin Trust (GBTC) to acquire more Bitcoin (BTC) in order to settle its debts with creditors. According to Bloomberg, Genesis liquidated these shares on April 2 for approximately $58.50 per share. The share price has since increased by about 50% from the initial price of $38.50 when Genesis sought permission from the U.S. bankruptcy court to sell the shares on February 2. The total sale amount was $2.1 billion, which allowed Genesis to purchase 32,041 Bitcoin on April 2 at a price of $65,685. The company plans to use the Bitcoin to repay its creditors. Currently, the 32,041 Bitcoin is valued at $2.18 billion. Coinbase, a cryptocurrency exchange, reassured the community that this sell-off would not have a significant impact on the overall crypto market. The bankruptcy plan permitted Genesis to either convert the GBTC shares into Bitcoin for the creditors or sell the shares and distribute the cash. Digital Currency Group, the parent company of Genesis, argued that Genesis’s proposal to pay its customers more than what they are entitled to is excessive. Genesis filed for Chapter 11 bankruptcy in the Southern District of New York in January 2023.
Genesis acquires $2.1 billion worth of Bitcoin after GBTC sell-off.