Genesis Global Granted Approval to Sell Grayscale Bitcoin Trust Shares
Genesis Global, a bankrupt crypto lender, has received court approval to sell its 35 million shares of Grayscale Bitcoin Trust (GBTC) valued at over $1.3 billion. This move is part of Genesis’ efforts to reimburse its customers. The approval allows the debtors to convert the shares into either bitcoin or cash. Additionally, Genesis has been given the authority to determine how to sell off the assets and collaborate with a broker for the sales process.
Genesis’ Grayscale Shares Valued at $1.6B
In a filing submitted on February 2nd, Genesis expressed its intention to sell shares of Grayscale Ethereum Trust, Grayscale Ethereum Classic Trust, and GBTC totaling $1.6 billion. Initially pledged as collateral for the Gemini Earn program, the GBTC shares gained significance after being approved as an exchange-traded product (ETP). However, Digital Currency Group (DCG) and Grayscale opposed Genesis’ plan to liquidate these assets.
Pushback on Asset Liquidation Plans
DCG argued that Genesis’ reasons for selling the assets were not justified and unnecessary. However, Genesis countered that DCG and Grayscale stood to profit from delaying the sale or redemption of the Trust Assets due to their above-market management fees.
As of now, GBTC is trading at around $46.19 per share.
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