Genesis Receives Approval to Sell $1.3 Billion in GBTC Stock to Refund Customers
Genesis GlobalBankrupt cryptocurrency lender has received approval from the bankruptcy court to sell shares of its Grayscale Bitcoin Trust (GBTC). The decision, made at a virtual hearing on February 14, allows Genesis to proceed with the sale of 35 million shares of GBTC stock, valued at more than $1.3 billion.
Planning asset liquidation and refund efforts
In an effort to repay customers, Genesis plans to liquidate GBTC stock and shares of Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust for a total of $1.6 billion. Initially pledged as collateral for the Gemini Earn program, Genesis now plans to convert these shares into bitcoin or cash.
Disputes and legal proceedings
Judge Sean Lane’s approval marks a significant step forward in Genesis’ efforts to manage its assets and compensate its customers. The decision was not without controversy, however, as Genesis faced opposition from the Digital Money Group. (DCG) and Grayscale’s plan to liquidate its assets.
Genesis Combats Opponents
While DCG argued that Genesis’ reasons for selling the assets lacked justification, Genesis countered, emphasizing the urgency of its financial situation and the potential consequences of a delay in selling or redeeming trust assets. Genesis cited potential conflicts of interest due to management fees and expressed concerns that DCG’s opposition could impede implementation of compensation efforts.
Impact on the market
While the legal battle continues, markets continue to closely monitor developments. At the time of reporting, GBTC stock was trading at approximately $46.19 per share, reflecting ongoing market dynamics and investor sentiment.
Key Takeaways:
- Genesis Global has received court approval to sell more than $1.3 billion worth of GBTC stock to repay customers.
- The decision comes amid a legal dispute with Digital Current Group and Grayscale over Genesis’ plans to liquidate its assets.
- Market observers are closely monitoring the situation as Genesis moves forward with its legal proceedings and compensation efforts.