Bankrupt crypto lender Genesis reportedly sold 36 million shares of Grayscale Bitcoin Trust (GBTC) to acquire additional Bitcoin (BTC) and settle debts with creditors It is being The sale took place on April 2, with each share valued at approximately $58.50 at the time, for a total value of $2.1 billion.
Genesis initially asked a U.S. bankruptcy court for permission to sell its GBTC shares, which were priced at $38.50, on February 2. A US judge has rejected Digital Currency Group's (DCG) request for consultations regarding the sale. DCG is the parent company of Genesis and Grayscale.
Using the proceeds from the sale, Genesis purchased 32,041 Bitcoins at a price of $65,685 per BTC. The Bitcoin that Genesis acquired is currently worth about $2.18 billion. The move is part of the company's efforts to repay creditors. However, crypto exchange Coinbase recently said that it does not expect the sale to have a significant impact on the overall crypto market as “the funds will likely remain within the crypto ecosystem.” Stated.
Under the bankruptcy plan, Genesis had the option to exchange GBTC stock for Bitcoin on behalf of its creditors or sell the stock and distribute cash. The rules allowed either approach. Genesis filed for Chapter 11 bankruptcy protection in January 2023.
