Genesis Global Capital is continuing to increase efforts to settle its debts after it filed for bankruptcy protection on January 20, 2023. Genesis is reportedly selling off its entire cryptocurrency portfolio. Grayscale GBTC holdings To implement the repayment strategy, it is necessary to purchase a significant amount of Bitcoin.
Genesis converts GBTC shares to Bitcoin in preparation for debt settlement
A Friday report Bloomberg Law revealed that Genesis completed the sale of 36 million GBTC, according to the court documents filed by its lawyers on April 2nd. Genesis received initial legal approval on February 2, with each unit valued at $38.50. The court documents show that the current price for GBTC at the time the sale was made on April 2 is $58.50, resulting in a $2.1 billion total price.
Bloomberg reported that, after the crypto lender went bankrupt, it used the proceeds from the sale of 32,041 Bitcoins at $65,685 to buy Bitcoins. These Bitcoins will then be given to its creditors, especially to those who had previously been enrolled in Gemini Earn.
The recent transactions are in line with Genesis’s bankruptcy plans, which allow the conversion of GBTC into Bitcoin or cash to settle its debt. The crypto lender is currently in debt to its creditors for $3.5 Billion and will start repayments once the court approves.
Genesis’ parent company Digital Currency Group, however, is opposed to its repayment plan. DCG claimed in a petition submitted to the court in February that its bankrupt company wants to settle creditor claims for amounts greater than what they’re entitled.
DCG believes that this repayment strategy is in violation of the Bankruptcy Code. “unfair” It will primarily benefit the senior creditors, who stand to gain greatly from an increase in Genesis’ crypto assets’ value. Equity holders and other stakeholders of the company will not be in a favorable position.
Genesis, founded in 2013, is among the most prominent crypto companies to declare bankruptcy. The sudden demise of the crypto exchange FTX is a major factor in its bankruptcy.
Bitcoin Price Analysis
Bitcoin has also gained 2.55% over the past day, reaching a value of $69.339. Investors would welcome such a price increase, especially after the token’s negative performance over the last week. BTC is largely still bullish in higher time frames as expectations continue to rise ahead of the halving event On April 19, 2019. According to predictions, the 4th halving will see Bitcoin mining reward drop from 6.25 BTC (previously known as Bitcoin) to 3.125 BTC.
BTC Trading at $69 314 per day on daily Chart | Source: BTCUSDT chart on Tradingview.com
Featured Image by Nairametrics. Charts from Tradingview.com
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