Struggling Genesis in search of buyers for assets worth more than $1 billion
Genesis Global Capital has submitted a request to the U.S. Bankruptcy Court for the Southern District of New York to authorize a large-scale sale of its assets. The company, a subsidiary of troubled Genesis Global Holdco, aims to liquidate approximately $1.4 billion worth of Grayscale Bitcoin Trust (GBTC) shares. This move is seen as a crucial step in maximizing the value of the estate and effectively managing its assets, given the volatile nature of the cryptocurrency market. The urgency of the request is evident as the bankrupt crypto lender has also filed a motion to expedite the proceedings, aligning with the court’s upcoming hearing on February 8. These GBTC shares are of particular significance as they serve as collateral for Gemini’s Earn program and include holdings obtained during the collapse of Three Arrows Capital. There is also a dispute over an additional 31.2 million GBTC shares, valued at approximately $1.2 billion, which were pledged to Gemini but are currently in a legal limbo regarding ownership. Gemini has responded with cautious optimism, viewing the motion as a critical step forward following the approval of GBTC as an exchange-traded product earlier this year. The sale of such a substantial quantity of GBTC, representing around 3.2% of Bitcoin’s total circulating supply, will likely have significant implications for the wider market. The liquidation plans also involve assets connected to Ether (ETH) and Ethereum Classic (ETC), further demonstrating Genesis’ focused approach to increasing liquidity and compensating creditors.
