Snaps

Bitcoin

Grayscale Bitcoin Trust

Billion

Coin

Genesis, a crypto lending company now in bankruptcy, has reportedly sold around 36 million shares of Grayscale Bitcoin Trust (GBTC) to purchase additional Bitcoin. This strategic acquisition is aimed at aiding the firm in its efforts to settle outstanding debts with its creditors. 
A report from Bloomberg on April 2 indicated that the shares were liquidated at an approximate value of $58.50 each, totaling a sale of $2.1 billion. This transaction allowed Genesis to acquire 32,041 Bitcoin at $65,685 per unit on the same day. 
This financial maneuver comes in the wake of Coinbase’s announcement that the proceeds from the GBTC sell-off are expected to largely remain within the cryptocurrency ecosystem. This statement was made to assuage market fears about the potential wider impact of the sell-off on the cryptocurrency market at large. 
“Our view is that much of these funds will likely remain within the crypto ecosystem, contributing to a neutral overall effect in the market,” a Coinbase spokesperson stated, providing a measure of reassurance to the cryptocurrency community. 
The genesis of Genesis’s decision to sell its GBTC shares dates back to February 2, when the firm sought permission from a U.S. bankruptcy court to offload the shares, valued at $38.50 each. Since then, the share price has remarkably increased by approximately 50%. 
The proceeds from this sale have enabled Genesis to continue its efforts to repay its creditors. As of the time of reporting, the 32,041 Bitcoin held by Genesis is valued at approximately $2.18 billion, marking a potential increase in the value of its holdings. 
This development follows Digital Currency Group’s (DCG) defense of its subsidiary, Genesis, against claims that the latter has proposed to pay its customers more than they are entitled to. DCG contended that Genesis’s current repayment plan would allocate “hundreds of millions of dollars more than the full amount of their petition date claims” to its lenders. 
Coin Telegraph reported on February 6 that DCG’s stance highlights a contentious debate surrounding the fairness and financial implications of Genesis’s bankruptcy plan. The plan allows Genesis to convert shares of the GBTC into the underlying Bitcoin asset on behalf of the creditors or to sell the shares outright and distribute the cash proceeds. 
This move by Genesis marks a pivotal point in its journey since filing for Chapter 11 bankruptcy in the Southern District of New York in January 2023. The firm’s strategic sale of GBTC shares and subsequent Bitcoin purchase underscore the intricate connections between cryptocurrency investments and the broader market dynamics, especially within the context of bankruptcy proceedings and creditor settlements. 
The post <a href="https://micky.com.au/genesis-snaps-up-2-1-billion-in-bitcoin-after-massive-gbtc-share-sale/">Genesis Snaps Up $2.1 Billion in Bitcoin After Massive GBTC Share Sale</a> appeared first on <a href="https://micky.com.au">Micky</a>.

Genesis Snaps Up $2.1 Billion in Bitcoin After Massive GBTC Share Sale

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