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<p class="is-style-lead">Genesis Global Capital has petitioned the U.S. Bankruptcy Court for the Southern District of New York for permission to conduct a massive sale of its assets.</p>
<p>The company, a subsidiary of the embattled Genesis Global Holdco, is targeting the liquidation of approximately $1.4 billion worth of Grayscale Bitcoin Trust (GBTC) shares.</p>
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   <p lang="en" dir="ltr">Genesis Global Capital filed a new motion with the U.S. Bankruptcy Court for the Southern District of New York seeking authorization to sell approximately $1.6 billion in trust assets, including Grayscale GBTC valued at approximately $1.4 billion and Grayscale Ethereum Fund…</p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1753953956534096212?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 4, 2024</a>
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<p>According to a Feb. 2 court <a href="https://assets.ctfassets.net/jg6lo9a2ukvr/1G1B0bKaCsf0sMaecKIKXs/8b539b07805326772756898a4c9c1bde/Motion__ECF_No._1227_.pdf" target="_blank" rel="noopener noreferrer nofollow">filing</a>, <a href="https://crypto.news/?s=GENESIS" target="_blank" rel="noopener noreferrer nofollow">Genesis</a> and its debtor affiliates have declared that disposing of the shares is a critical step in maximizing estate value and efficiently managing its assets.</p>
<p>The development comes as the overall cryptocurrency market undergoes severe fluctuations. The ability to swiftly convert these investments into more liquid assets is considered a viable strategy for stabilization efforts.</p>
<p>Genesis</p>
<p>Genesis revealed in the filing that it holds a significant number of GBTC shares—units that correlate to a specific portion of Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) and allow investors a regulated means of gaining exposure to the cryptocurrency’s price movements.</p>
<p>You might also like: <a href="https://crypto.news/genesis-sec-settlement-gemini-earn-lawsuit/" rel="noopener noreferrer nofollow"> Genesis agrees $21m SEC settlement in Gemini Earn lawsuit </a></p>
<p>The urgency of the motion is palpable, as the <a href="https://crypto.news/genesis-global-files-for-bankruptcy/" target="_blank" rel="noopener noreferrer nofollow">bankrupt</a> crypto lender has filed a concurrent <a href="https://restructuring.ra.kroll.com/genesis/Home-DownloadPDF?id1=MzA1NzAwNA==&amp;id2=-1" target="_blank" data-type="link" data-id="https://restructuring.ra.kroll.com/genesis/Home-DownloadPDF?id1=MzA1NzAwNA==&amp;id2=-1" rel="noopener noreferrer nofollow">request</a> to expedite the proceedings to coincide with the court’s upcoming hearing on Feb. 8.</p>
<p>These GBTC shares are particularly notable; they are part of the original collateral for Gemini’s Earn program and include holdings acquired amidst the collapse of <a href="https://crypto.news/genesis-and-3ac-reach-33m-settlement-in-billion-dollar-claim/" target="_blank" rel="noopener noreferrer nofollow">Three Arrows Capital</a>.</p>
<p>Another point of contention stems from the claim to an additional 31.2 million GBTC shares, valued at around $1.2 billion—assets pledged to Gemini but caught in a legal limbo of unsettled ownership.</p>
<p>On its end, Gemini has echoed a cautiously optimistic tone, labeling the motion a critical advancement that follows the approval of GBTC as an exchange-traded product earlier this year.&nbsp;</p>
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   <p lang="en" dir="ltr">Earn Update: Late yesterday, Genesis filed a Motion Authorizing Sale of Trust Assets. This is an important step forward following the approval of the Grayscale Bitcoin Trust (GBTC) as an exchange-traded product (ETP) on January 10th. As detailed in the motion, Genesis is seeking…</p>— GeminiTrustCo (@GeminiTrustCo) <a href="https://twitter.com/GeminiTrustCo/status/1753840472353640569?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 3, 2024</a>
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<p>Offloading such a substantial quantity of GBTC, which approximates 3.2% of Bitcoin’s total circulating supply, will likely have notable implications for the broader market.</p>
<p>The plans for liquidation also include assets connected to Ether (<a href="https://crypto.news/price/ethereum/" target="_blank" data-type="link" data-id="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) and Ethereum Classic (<a href="https://crypto.news/price/ethereum-classic/" target="_blank" data-type="link" data-id="https://crypto.news/price/ethereum-classic/" rel="noopener noreferrer nofollow">ETC</a>), reinforcing Genesis’ focused scheme to increase its liquidity and facilitate creditor remuneration.</p>
<p>Read more: <a href="https://crypto.news/ftx-seeks-expedited-court-approval-to-sell-1-4b-anthropic-stake/" rel="noopener noreferrer nofollow"> FTX seeks expedited court approval to sell $1.4b Anthropic stake </a></p>

Bankrupt Genesis seeks to sell over $1b worth of Bitcoin trust shares

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