Genesis buys $2.1b of Bitcoin after selling 36m GBTC shares

According to a Bloomberg Law report citing court documents filed on April 5, Genesis sold 36 million of its GBTC shares and used the proceeds to buy 32,041 Bitcoins, which it hopes to use to repay creditors.

The New York bankruptcy court authorized the decision to sell the GBTC shares on Feb. 14, alongside shares from Grayscale Ethereum (ETH) trusts. Genesis initially sought permission when the GBTC shares were valued at nearly $1.4 billion.

Similarly, its shares in Grayscale Ethereum Trust were valued at $165 million, and its Grayscale Ethereum Classic Trust shares were valued at $38 million.

These valuations have changed significantly with the recent surge in Bitcoin prices. At the current Bitcoin price of around $68,000, the coins purchased with the proceeds from the GBTC shares alone are now worth nearly $2.2 billion.

The bankrupt crypto lender plans to distribute these coins to its Gemini Earn creditors as part of its repayment strategy. This development follows arguments from the Digital Currency Group (DCG), Genesis’s parent company, regarding the proposed repayment plan, which DCG claims would overpay lenders.