Bankrupt crypto finance company Genesis sells approximately 36 million shares of Grayscale Bitcoin Trust (GBTC) to acquire additional Bitcoin (BTC) as part of preparations to settle debts with creditors is reported to have been sold.
According to recent Bloomberg reportOn April 2, Genesis liquidated approximately 36 million GBTC shares, valued at approximately $58.50 per share at the time.
Since Genesis asked a U.S. Bankruptcy Court for permission to sell 36 million shares of GBTC on February 2, the stock price has risen about 50%. The stock price at the time was $38.50.
The total sale amounted to $2.1 billion, with 32,041 Bitcoins available for purchase on April 2nd at a price of $65,685. Genesis will continue its efforts to repay creditors using Bitcoin.
At the time of publication, 32,041 Bitcoins are currently worth $2.18 billion.
Just recently, cryptocurrency exchange Coinbase provided assurance to its community that this crash is not expected to have a widespread impact on the crypto market.
“In our view, many of these funds will likely remain within the crypto ecosystem and contribute to an overall market-neutral effect,” Coinbase said.
He explained that the rules of the bankruptcy plan allow Genesis to convert GBTC stock into underlying Bitcoin assets on behalf of creditors, or sell the stock outright and distribute cash.
Related: Gemini considered forming a ‘giant company’ with Genesis before going up in smoke
This comes after Digital Currency Group alleged that its subsidiary Genesis offered to pay customers more than they were actually entitled to.
On February 6th, Cointelegraph reported that DCG claimed that Genesis’ current plan would result in “hundreds of millions of dollars going to lenders in excess of the full amount invoiced on the filing date.”
It was exactly one year ago, in January 2023, that Genesis filed for Chapter 11 bankruptcy protection in the Southern District of New York.
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