Genesis Global Capital Seeks Court Approval for Asset Liquidation
Genesis Global Capital, a cryptocurrency lending firm, has filed a request with the U.S. Bankruptcy Court in the Southern District of New York to sell approximately $1.6 billion worth of trust assets. The assets include shares in various Grayscale trusts, such as the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust.
Composition of Assets for Sale
In the filing, Genesis provides details on the assets intended for sale. This includes around $1.4 billion in Grayscale Bitcoin Trust shares, $165 million in Grayscale Ethereum Trust shares, and about $38 million in Grayscale Ethereum Classic Trust shares. The company has also requested an expedited process and hopes to have the sale motion heard at the next court session on February 8.
Maximizing Value Return and Reclaiming Shares
The purpose of liquidating these assets is to maximize value for creditors and stakeholders during the bankruptcy process. Genesis has been involved in cryptocurrency lending activities before, including transferring collateral to Gemini through the Gemini Earn program and acquiring assets from Three Arrows Capital’s bankruptcy. The sale also involves efforts to reclaim additional shares pledged to Gemini but not yet transferred.
Impact on Stakeholders and Regulatory Settlements
Gemini has responded to the filing, considering it a significant development. This comes after the recent approval of the Grayscale Bitcoin Trust as an exchange-traded product (ETP), which could affect the valuation and liquidity of the assets being sold. Additionally, Genesis has agreed to settle a lawsuit with the Securities and Exchange Commission (SEC) by paying a $21 million fine, subject to post-bankruptcy availability of funds.
Genesis’s Strategy for Financial Difficulties
The proposed asset sale is a crucial part of Genesis’s strategy to address its financial difficulties and meet its obligations to creditors. By liquidating its holdings in the Grayscale trusts, Genesis aims to take advantage of current market conditions and regulatory developments to optimize recovery for stakeholders.
Hot Take: Genesis Global Capital Seeks Approval to Sell $1.6 Billion Worth of Trust Assets
Genesis Global Capital, a cryptocurrency lending firm, has filed a request with the U.S. Bankruptcy Court in the Southern District of New York to sell approximately $1.6 billion worth of trust assets, including shares in various Grayscale trusts. This move is aimed at maximizing value for creditors and stakeholders during the bankruptcy proceedings. It also follows Genesis’s previous engagements in the cryptocurrency lending space and efforts to legally reclaim additional shares pledged to Gemini. The asset sale has implications for stakeholders and regulatory settlements, particularly considering the recent approval of the Grayscale Bitcoin Trust as an exchange-traded product. Overall, this strategic move is part of Genesis’s broader strategy to address its financial difficulties and fulfill its obligations to creditors.
By
By
By
By
By