Genesis Global Capital Seeks Approval to Sell $1.6 Billion in Digital Asset Shares
Cryptocurrency lender Genesis Global Capital has filed a motion in New York bankruptcy court to sell over $1.6 billion in digital asset shares, with the majority of shares being in Grayscale’s Bitcoin Trust (GBTC).
Genesis Aims to Repay Creditors
Genesis is seeking court approval to sell $1.4 billion worth of GBTC shares to repay creditors affected by its legal dispute with Gemini. The lender wants to liquidate its GBTC shares as collateral for loans made through Gemini’s Earn program.
Genesis Requests Shortened Deadlines
Genesis has requested the court shorten relevant legal deadlines so that its motion to sell GBTC can be heard at a February 8th court hearing.
Analysts Predict Downward Pressure on Bitcoin Price
The sale of Genesis’ GBTC shares could put downward pressure on Bitcoin’s price, according to analysts. Selling such a large position rapidly could spark volatility in the crypto markets.
Genesis’ Financial Troubles and Exposure to Failed Entities
Genesis fell into financial troubles due to liquidity issues worsened by the collapse of FTX and exposure to failed entities like Three Arrows Capital in 2022.
Hot Take: Potential Impact on Bitcoin Price
The sale of Genesis’ GBTC shares could have a significant impact on Bitcoin’s price. If the estate decides to sell its entire stake quickly, there may be downside pressure on Bitcoin. This development highlights the interconnectedness and potential volatility of the cryptocurrency market.
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