The big Bitcoin buy follows Coinbase’s announcement that most of the money from the GBTC sell-off would “stay inside the crypto ecosystem.”
As part of its plans to satisfy its obligations with creditors, the bankrupt crypto lending business Genesis allegedly sold 36 million shares of the Grayscale Bitcoin Trust (GBTC) in order to obtain extra Bitcoin.
A recent Bloomberg article states that on April 2, Genesis sold out around 36 million GBTC shares, which were worth about $58.50 each.
Genesis first requested approval from a US bankruptcy court to sell 36 million GBTC shares on February 2 at a price of $38.50 a share; since then, the share price has increased by about 50%.
On April 2, at a price of $65,685, 32,041 bitcoins could be purchased with a total sales value of $2.1 billion. In its ongoing effort to repay creditors, Genesis will use Bitcoin.
The value of the 32,041 bitcoins was $2.18 billion as of the publishing date. Coinbase, a cryptocurrency exchange, has reassured its users that the recent sell-off will not affect the market as a whole.
Genesis has two options under the bankruptcy plan’s regulations: either sell the GBTC shares and divide the proceeds or convert them into the underlying Bitcoin asset on behalf of the creditors.
This follows claims made by Digital Currency Group (DCG) that Genesis, a wholly owned subsidiary, has offered to pay its clients more than they are due.
Lenders will get “hundreds of millions of dollars more than the whole value of their petition date claims” under Genesis’ present scheme, according to a Feb. 6 Cointelegraph article citing DCG’s statements.
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