Genesis Acquires 32,041 BTC After Selling GBTC Shares
In a significant move in the cryptocurrency world, Genesis, the beleaguered trading company, has finalized the sale of over 35 million shares of the Grayscale Bitcoin Trust (GBTC). This sale marks a pivotal moment for Genesis Global Trading, which recently faced bankruptcy. The sale, detailed in court documents and reported by CoinDesk, signifies a strategic shift in the company's portfolio.
The genesis of this transaction dates back to February 2024 when a court approved the sale of GBTC securities owned by Grayscale Investments. At the time of filing, legal representatives estimated Genesis's assets at $1.6 billion. Of this sum, approximately $1.4 billion was attributed to GBTC shares, with $165 million allocated to Grayscale Ethereum Trust securities and $38 million to Grayscale Ethereum Classic Trust shares.
According to the disclosed documents, the transaction concluded on April 2, 2024. It's reported that Genesis acquired 32,041 BTC from the proceeds of the sale. This development was corroborated by analysts at Arkham Intelligence, who identified wallets believed to be owned by Genesis. The firm distributed the 32,041 BTC across two addresses, with one containing over 24,000 BTC and the other holding 8,000 BTC. As of the time of writing, these assets are valued at approximately $2.17 billion.
The distribution of these cryptocurrencies is anticipated to benefit approximately 232,000 participants in the Gemini Earn investment program, who suffered losses due to Genesis's bankruptcy. Notably, Gemini Earn clients were promised returns of up to 13%. However, in the wake of FTX's collapse and the subsequent market downturn, Genesis was compelled to freeze client funds.
It's worth highlighting that Genesis has also reached a settlement with U.S. authorities, resolving a lawsuit filed by a senior official in New York.
Earlier, Coinbase stated that the sale of GBTC shares by cryptocurrency lender Genesis would not have a significant impact on the market. This assessment underscores the resilience of the cryptocurrency market amidst significant institutional transactions.
This acquisition of BTC by Genesis signifies a noteworthy development in the crypto sphere. As the market continues to evolve, such transactions shed light on the dynamics between traditional financial institutions and emerging digital assets. Stay tuned for more updates on this evolving narrative.
