Genesis, a bankrupt cryptocurrency lending firm, has reportedly sold 36 million shares of the Grayscale Bitcoin Trust (GBTC) in order to acquire additional Bitcoin (BTC) and settle its debts with creditors. The sale took place on April 2, with each share valued at around $58.50 at that time, resulting in a total amount of $2.1 billion.
Genesis initially sought permission from a US bankruptcy court to sell these GBTC shares on February 2, when they were priced at $38.50. The US judge overruled a filing by 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 move is part of the company's efforts to repay its creditors. However, cryptocurrency exchange Coinbase recently stated that the sell-off 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 to convert the GBTC shares into Bitcoin on behalf of the creditors or sell the shares and distribute the cash. The rules allowed for either approach. Genesis filed for Chapter 11 bankruptcy in January 2023.