Genesis has gone above and beyond by purchasing Bitcoin in order to maximize profits for its creditors.
Genesis, a collapsed cryptocurrency lender, got the go-ahead from the court in February to sell off its massive holdings of Grayscale shares in an effort to raise more than $1 billion.
The now-defunct crypto lender has chosen a novel tack in its pursuit of maximum profits for its stakeholders and creditors after the final drop of its Grayscale shares.
Genesis was able to close the sale of its Grayscale Bitcoin Trust (GBTC) shares earlier this week, according to court records filed on Friday, April 5. The insolvent cryptocurrency lender reportedly sold 36 million shares, with a market value of around $58.50 per share.
Genesis then spent the money buying more than 32,000 bitcoins, or $2.1 billion, at the current token price of $65,845. The crypto lender plans to use these tokens to reimburse debtors, especially those from Gemini Earn, as stated in the official filings.
Genesis’ choice is in line with the guidelines laid forth in its bankruptcy plan, which provide two alternatives: either sell the shares directly to disperse the money or convert them into bitcoins for the creditors.
Considering the bright future of Bitcoin—experts predict its value will reach $80,000 by year’s end—Genesis is better positioned to maximize rewards for stakeholders and creditors by purchasing the asset.
Genesis still owes its creditors more than $3.5 billion as of this writing, and the bankruptcy court has not yet approved a repayment plan.
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