Genesis buys $2.1 billion worth of BTC after selling 36 million GBTC shares
Crypto lender Genesis, which filed for bankruptcy in January 2023, sold 36 million shares of Grayscale Bitcoin Trust (GBTC) it owned and used the proceeds to purchase 32,041 bitcoins. The purchase amount was approximately $2.1 billion. The company hopes to use the purchased cryptocurrency to pay off debts to its creditors.
The sale of Grayscale Bitcoin Trust shares was approved by the New York bankruptcy court in February 2024. At that time, Genesis' assets were valued at $1.6 billion, of which about $1.4 billion was in GBTC securities, $165 million in Grayscale Ethereum Trust shares, and another $38 million in Grayscale Ethereum Classic Trust securities. After Bitcoin rose in price, the assets of the crypto lender increased noticeably in price.
According to analysts at Arkham Intelligence, all the proceeds from GBTC shares were spent on the purchase of 32,041 bitcoins. After the purchase, the assets were distributed across two crypto wallets: more than 24,000 BTC were transferred to one, and 8,000 BTC to the second.
Analysts suggest that in the future, bitcoins will be distributed among 232,000 participants in the Gemini Earn investment program, who suffered as a result of the bankruptcy of Genesis.
