Genesis Redeems GBTC Shares and Acquires 32K Bitcoins for Debt Settlement

By: Eva Baxter

Crypto lender Genesis Global Capital, despite being bankrupt since January 2023 has been engaged in efforts for creditors' settlements and has sold off all of its GBTC shares, turning them into Bitcoin. Genesis accomplished this by legally off-loading its 36 million GBTC shares, as per court documents, resulting in total sales accounting to $2.1 billion, with the GBTC's price at the time of sale being $58.50.

The funds obtained were used to purchase 32,041 Bitcoins in-market, at a price of approximately $65,685. These Bitcoins are planned for disbursement as part of Genesis's repayment strategy towards creditors, particularly those from the Gemini Earn program.

The crypto entity still owes about $3.5 billion and is awaiting court consent for repayment commencement. Despite this, it has to confront disapproval from its parent institution, Digital Currency Group (DCG), over its repayment proposal. DCG is arguing that such a strategy is in violation of Bankruptcy Code's fairness virtues.

The conversion of Bitcoin or direct cash from GBTC shares was part of Genesis's bankruptcy plan to attend to existing debts. During this period, Bitcoin's price has seen an increase of 2.55%, reaching $69,339, with halving event on the horizon, miners' rewards are slated for reduction from 6.25 BTC to 3.125 BTC.