Genesis, a bankrupt crypto lending firm, reportedly sold 36 million Grayscale Bitcoin Trust (GBTC) shares to acquire more Bitcoin (BTC) as part of its debt settlement strategy.
The shares were liquidated on April 2, fetching about $58.50 each, totaling $2.1 billion. This enabled the purchase of 32,041 bitcoins at $65,685 per BTC. The current value of these bitcoins stands at $2.18 billion.
Since Genesis sought permission from the U.S. bankruptcy court on Feb. 2 to sell 36 million GBTC shares, when the shares were at $38.50, the share price has surged by approximately 50%.
Genesis received permission from a New York bankruptcy court to sell nearly 36 million shares in GBTC, as well as additional shares in two Grayscale Ethereum trusts.
The significant Bitcoin purchase comes after Coinbase declared that the majority of the proceeds from the GBTC sell-off would “remain within the crypto ecosystem.”
The current value of these bitcoins stands at $2.18 billion. Coinbase recently assured the community that the sell-off would likely not significantly impact the crypto market, as much of the funds are expected to remain within the ecosystem, contributing to a neutral overall effect.
Also Read: Genesis Global Capital Settles for $21M in Landmark SEC Agreement
