Genesis, a bankrupt cryptocurrency lending company, has reportedly sold 36 million shares of Grayscale Bitcoin Trust (GBTC) to acquire more Bitcoin (BTC) and settle your debts with creditors. The sale took place on April 2, and each share was valued at around $58.50 at the time, resulting in a total amount of $2.1 billion.
Genesis initially asked a US bankruptcy court for permission to sell these GBTC shares on February 2, when they were priced at $38.50. The US judge struck down a request from Digital Currency Group (DCG) to consult on the sales. DCG is the parent company of Genesis and Grayscale.
With the funds raised from the sale, Genesis purchased 32,041 Bitcoin at a price of $65,685 per BTC. The Bitcoin acquired by Genesis is currently worth around $2.18 billion. This measure is part of the company's efforts to pay its creditors. However, cryptocurrency exchange Coinbase recently stated that the liquidation is not expected to have a significant impact on the broader crypto market, as "the funds will likely remain within the crypto ecosystem."
Under the bankruptcy plan, Genesis had the option of converting GBTC shares into Bitcoin on behalf of creditors or selling the shares and distributing the cash. The rules allowed either approach. Genesis filed for Chapter 11 bankruptcy in January 2023.
