Genesis Sells 36 Million GBTC Shares to Buy BTC and Pay Off Debts

A cryptocurrency lending company known as Genesis has reportedly sold 36 million shares of the Grayscale Bitcoin Trust (GBTC) in order to purchase extra Bitcoin (BTC) and settle its debts with creditors.  

Genesis is currently in the process of filing for bankruptcy. Due to the fact that each share was priced at around $58.50 at the time of the sale, the total sum that was obtained was $2.1 billion. The sale took place on April 2.  

There was an initial request made by Genesis to a bankruptcy court in the United States for authorization to sell these GBTC shares on February 2, when the price of each share was $38.50  

A petition submitted by Digital Currency Group (DCG) to consult on the sales was rejected by the judge in the United States. The corporation that is the parent of Genesis and Grayscale is called DCG.  

Genesis made a purchase of 32,041 Bitcoin at a price of $65,685 per BTC using the cash that were raised from the sale. At this moment, the value of the Bitcoin that Genesis has acquired is around $2.18 billion. In an effort to repay its creditors, the corporation has taken this step as part of its efforts.   

Coinbase, a cryptocurrency exchange, recently claimed that it is not anticipated that the sell-off will have a substantial influence on the overall cryptocurrency market. This is due to the fact that the "funds will likely remain within the crypto ecosystem.  

During the course of the bankruptcy proceedings, Genesis was given the choice to either sell the GBTC shares and distribute the proceeds to the creditors or to convert the shares into Bitcoin on behalf of the creditors.  

Either strategy could be taken, according to the guidelines. In January of 2023, Genesis submitted a petition for bankruptcy under Chapter 11.  

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