Genesis Converts GBTC Shares into Bitcoin: Acquires 32,000 BTC in Major Move
Bankrupt crypto lending firm Genesis has converted approximately 36 million shares of Grayscale Bitcoin Trust (GBTC) into Bitcoin as part of preparations to settle its debts with creditors.
According to a recent report by Bloomberg , the company liquidated the GBTC shares on April 2, at a value of around $58.50 per share at that time.
Notably, the share price of GBTC has surged by approximately 50% since Genesis initially sought permission from the U.S. bankruptcy court to sell the shares.
Back on February 2, when the shares were priced at $38.50, Genesis began the process of offloading the GBTC shares.
The total amount generated from the sale amounted to $2.1 billion, enabling Genesis to acquire 32,041 Bitcoin on April 2, at a price of $65,685 per Bitcoin.
These acquired Bitcoins will be used by Genesis to fulfill its obligations towards creditors.
As of the time of writing, the 32,041 Bitcoin holds a value of approximately $2.18 billion.
Genesis purchases $2.1B of Bitcoin following GBTC sell-off
The significant Bitcoin purchase comes after Coinbase declared that the majority of the proceeds from the GBTC sell-off would “remain within the crypto ecosystem.”
Bankrupt crypto lending firm Genesis reportedly… pic.twitter.com/wthYyOpyIu
— Giannis Andreou (@gandreou007) April 6, 2024
In response to concerns about the potential impact of this large sell-off on the crypto market, cryptocurrency exchange Coinbase reassured the community that the funds are likely to remain within the crypto ecosystem, having a neutral overall effect on the market.
Coinbase explained that the bankruptcy plan allows Genesis to either convert GBTC shares into Bitcoin assets on behalf of the creditors or sell the shares outright and
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