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. ,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 distribute the cash. ,The move follows Digital Currency Group’s claim that its subsidiary company, Genesis, has proposed to pay its customers more than their actual entitlements. ,


In a bankruptcy court filing last month, Genesis announced that it had 
reached a settlement agreement with the SEC
, agreeing to pay $21 million to resolve the civil lawsuit. ,In November 2022, Gemini Earn had approximately 340,000 customers and $900 million in assets under management, as stated in the SEC’s lawsuit. ,Following FTX’s bankruptcy in the same month, Genesis temporarily suspended Gemini Earn withdrawals, citing “unprecedented market turmoil” and liquidity issues.,Genesis 
filed for bankruptcy
 after the SEC’s lawsuit was filed in January of the previous year. ,In February, Gemini 
agreed to return $1.1 billion
 to Gemini Earn customers through the Genesis bankruptcy proceeding, as part of a settlement with New York’s financial regulator.,More recently, a federal judge ruled that the SEC’s 
lawsuit against crypto firms Gemini and Genesis
 will proceed in court. ,The judge’s decision came after Gemini and Genesis attempted to have the lawsuit, which alleges the sale of unregistered securities through the Gemini Earn program, dismissed.,In a 32-page order, New York District Court Judge Edgardo Ramos 
rejected the motions
 to dismiss filed by Gemini and Genesis, stating that the SEC’s allegations were plausible enough to continue with the legal proceedings. ,Additionally, the judge denied a separate request by the companies to halt the SEC’s demand for them to cease selling securities and to hand over Gemini Earn profits if the SEC prevails in the lawsuit., ,Genesis Buys $2.1 Billion Worth of Bitcoin