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Genesis Seeks to Sell Over $1.4 Billion in Assets

Genesis Seeks to Sell Over $1.4 Billion in Assets:

  • Genesis is looking to sell GBTC shares worth $1.4 billion as part of its bankruptcy proceedings.
  • The sale aims to generate crucial liquidity to repay creditors.
  • Court approval is crucial for the completion of this transaction.

Genesis on the Verge of Selling $1.4 Billion GBTC Shares?

The bankrupt company Genesis Global Capital has recently filed a motion with the Southern District of New York bankruptcy court, seeking authorization to liquidate a portion of its managed assets. At the heart of this request is the sale of approximately $1.4 billion in GBTC shares, as well as around $200 million worth of shares from the “Grayscale Ethereum Trust” and “Grayscale Ethereum Classic Trust.

As a reminder, Genesis, a former major cryptocurrency lender, was forced to file for Chapter 11 bankruptcy protection under U.S. bankruptcy law, following a series of financial setbacks exacerbated by market volatility and the collapse of other major players like FTX.

Within its request, the company has also taken steps to expedite the legal process, allowing its proposed sale to be reviewed more quickly at the upcoming bankruptcy court hearing on Thursday, February 8.

Genesis’ Judicial Restructuring

The GBTC shares in question not only represent the initial collateral transferred to Gemini through the Gemini Earn program, but also include stakes acquired following the bankruptcy of Three Arrows Capital.

In addition to these assets, Genesis is seeking to legally claim over 31 million GBTC shares worth around $1.2 billion that were allegedly promised to Gemini but never transferred.

Furthermore, this potential sale comes after Genesis agreed to settle a $21 million fine with the SEC.

In the end, the outcome of this motion could have significant implications not only for Genesis but also for its creditors.

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