Genesis, the crypto lender that went bankrupt, has completed the redemption of its Grayscale Bitcoin Trust (GBTC) shares, buying with the proceeds a total of 32,041 bitcoins (equivalent to 2.2 billion dollars).
Summary
Genesis completes the sale of its GBTC shares
Genesis Global Holdco LLC, the crypto lender that filed for bankruptcy after FTX, seems to have completed the sale of its Grayscale Bitcoin Trust (GBTC) shares.
This operation refers to the concession obtained from the bankruptcy court in mid-February 2024, in order to proceed with compensating its creditors.
Basically, the authorization provided for the sale of nearly 36 million GBTC shares, as well as other shares of two Grayscale Ethereum trusts.
The estimated value by Genesis lawyers was nearly $1.4 billion in GBTC, $165 million in Grayscale Ethereum Trust, and $38 million in Grayscale Ethereum Classic Trust. This is a total share sale of almost $1.6 billion.
According to what is reported, the failed crypto lender would have completed the sale of GBTC shares on April 2nd.
With the proceeds from that sale, then, Genesis purchased a total of 32,041 Bitcoin (BTC), with an equivalent value of 2.2 billion dollars.
Genesis redeems its GBTC shares and buys Bitcoin: what are the plans now?
The purchase of 32,041 BTC made by Genesis, with the proceeds from the complete sale of its GBTC shares, was calculated at a bitcoin price of $67,500. This amounts to $2.2 billion.
At the moment, it seems that Genesis must first commit to compensating Gemini Earn’s creditors, distributing to them the tokens they are entitled to.
And indeed, following the collapse of the crypto broker, among those affected was also Gemini which, in the month of May 2023, had threatened to sue Genesis for the non-payment of $630 million.
Not only that, the crypto lender had a debt with Gemini customers of over 900 million dollars.
The price of BTC
While the account of bitcoins purchased by Genesis with the proceeds from the sale of GBTC shares was executed at a price of $67,500 per BTC, now the situation is a bit different.
And indeed, looking at the current chart, Bitcoin (BTC) is up +5% compared to 24 hours ago, returning to its all-time high levels. At the time of writing, BTC is worth $72,688.
Not only that, in the last 24 hours, the trading volume of BTC has also increased by +63%.
Obviously, even the market cap of BTC has risen, now standing above 1.430 billion dollars.
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