Crypto News – In an attempt to raise more Bitcoin as part of its plans to pay off creditors, bankrupt cryptocurrency lending company Genesis is said to have sold over 36 million shares of Grayscale Bitcoin Trust (GBTC).
Genesis GBTC Sale: Company Purchases $2.1 Billion in Bitcoin After Share Sale
Genesis liquidated over 36 million GBTC shares on April 2, valued at about $58.50 per share at the time, according to a recent Bloomberg article. Since Genesis first asked the U.S. bankruptcy court for authorization to sell the 36 million GBTC shares on February 2 at a price of $38.50 per share, the share price has increased by about 50%. A total of $2.1 billion was sold, enabling the purchase of 32,041 Bitcoin on April 2 for $65,685. Genesis will keep trying to pay back its creditors with Bitcoin.
Will Creditors Get More Payments Than They Should?
It clarified that Genesis was permitted by the terms of the bankruptcy plan to either sell the shares outright and disburse the proceeds, or convert the GBTC shares into the underlying Bitcoin asset on behalf of the creditors. This follows Digital Currency Group’s claim that Genesis, a subsidiary, has offered to pay its clients more than they are legally entitled to. According to DCG, under Genesis’ current strategy, lenders would get hundreds of millions of dollars in excess of the total amount of their petition date claims.
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