Embattled cryptocurrency lender Genesis Global Capital has continued to ramp up its efforts to pay creditors after filing for bankruptcy in January 2023. As part of these efforts, Genesis has reportedly sold its entire stake in Grayscale GBTC to acquire a substantial amount of bitcoin to implement your payment strategy.
Genesis converts GBTC shares to bitcoin in preparation for debt settlement
According to abitcoin” target=”_blank” rel=”nofollow”> Friday report By Bloomberg Law, Genesis completed the sale of its 36 million GBTC shares, the company's lawyers revealed in a court filing on April 2. Genesis had initially received legal approval to liquidate its holdings in GBTC on February 2 with each share unit valued at $38.50. However, court documents showed that the current price of GBTC at the time of the sale on April 2 was $58.50, resulting in a total sale price of $2.1 billion.
The Bloomberg report revealed that the bankrupt crypto lender used these proceeds to purchase 32,041 bitcoin at a market price of $65,685, which will be distributed to creditors as part of their repayment plan, especially those who were previously enrolled in the Gemini Earn program. .
These recent transactions align with Genesis' bankruptcy plan, which allows for the conversion of GBTC shares to bitcoin or direct cash for the settlement of its existing debt. The cryptocurrency lender currently owes $3.5 billion to creditors and will begin repayments upon court approval.
However, Genesis faces fierce opposition from its parent company, Digital Currency Group (DCG), over its proposed payment plan. In a petition filed in February, DCG argues that its bankrupt subsidiary intends to settle creditors' claims for amounts greater than their respective rights.
DCG believes that such a payment strategy violates the Bankruptcy Code and is “unfair” as it will only benefit senior creditors who will benefit greatly from an appreciation in the value of Genesis' crypto assets, while shareholders and parties company stakeholders are left in unfavorable positions.
Founded in 2013, Genesis is one of the major crypto companies that filed for bankruptcy. Its insolvency is largely related to the sudden collapse of the defunct FTX crypto exchange.
bitcoin Price Overview
In other news, bitcoin gained 2.55% in the last day to reach a price of $69,339. Such a price increase would be encouraging for investors, especially after the token's overall negative performance over the past week. On higher timeframes, btc remains largely bullish as anticipation continues to build ahead of the halving event on April 19. The fourth halving in bitcoin history is expected to reduce the mining reward from 6.25 btc to 3.125 btc.
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x/MBO69E5F/" alt="Genesis" width="1479" height="893" loading="lazy"/>btc trading at $69,314 on the daily chart | Source: BTCUSDT chart on Tradingview.com
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