Genesis Acquires Over 32,000 BTC After Offloading GBTC Shares

2 weeks ago 34

Embattled crypto lender Genesis Global Capital has continued to ramp up efforts to wage up creditors aft filing for bankruptcy extortion successful January 2023. As portion of these efforts, Genesis has present reportedly sold disconnected the entirety of its Grayscale GBTC holdings to get a important magnitude of Bitcoin successful bid to instrumentality its repayment strategy. 

Genesis Converts GBTC Shares To Bitcoin In Preparation For Debt Settlement

According to a Friday report by Bloomberg Law, Genesis finalized the merchantability of its 36 cardinal GBTC shares, arsenic revealed by the company’s lawyers successful a tribunal filing connected April 2. Genesis had initially received ineligible support to liquidate its GBTC holdings connected February 2 with each portion stock valued astatine $38.50. However, tribunal documents showed that the existent terms of GBTC arsenic astatine the clip of merchantability connected April 2 was $58.50 resulting successful a full merchantability terms of $2.1 billion. 

Bloomberg’s study disclosed that the bankrupt crypto lender past utilized these proceeds to acquisition 32,041 Bitcoin astatine a marketplace terms of $65,685, which volition beryllium distributed to creditors arsenic portion of its repayment plan, particularly those who were antecedently enrolled successful the Gemini Earn program. 

These caller transactions align with Genesis’s bankruptcy program which allows the conversion of GBTC shares to either Bitcoin oregon nonstop currency for the colony of its existing debt. Currently, the crypto lender owes $3.5 cardinal to creditors and volition commence repayment pursuing tribunal approval. 

However, Genesis faces fierce absorption from its genitor company, Digital Currency Group (DCG), implicit its projected repayment plan. In a petition filed successful February, DCG argues that its bankrupt subsidiary looks to settee creditors’ claims astatine amounts higher than their respective entitlement. 

DCG believes specified a repayment strategy violates the Bankruptcy Code and is “unfair” since it volition lone payment elder creditors who volition mostly summation from an appreciation successful Genesis’s crypto assets worth portion equity holders and institution stakeholders are near successful unfavorable positions.

Founded successful 2013, Genesis is 1 of the salient crypto firms to record for bankruptcy. Its insolvency is mostly linked to the abrupt illness of the defunct crypto speech FTX.

Bitcoin Price Overview

In different news, Bitcoin gained by 2.55% successful the past time to scope a terms of $69,339. Such terms summation would beryllium encouraging to investors particularly pursuing the token’s wide antagonistic show successful the past week. On higher timeframes, BTC mostly remains mostly bullish arsenic anticipation continues to physique up of the halving event connected April 19.  The 4th halving successful Bitcoin’s past is expected to trim the mining reward from 6.25 BTC to 3.125 BTC.

GenesisBTC trading astatine $69,314 connected the regular illustration | Source: BTCUSDT illustration connected Tradingview.com

Featured Image from Nairametrics, illustration from Tradingview.com

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