Genesis sells GBTC, buys BTC to settle debts

The financially beleaguered cryptocurrency exchange has sold 36 million shares of its Grayscale Bitcoin Trust (GBTC) to settle further debts.

Genesis has sold 36 million shares of its Grayscale Bitcoin Trust stock, and will use the proceeds, valued at $58.50 per stock at the time of the sale on April 2, to settle further debts. The company bought a total of $2.1 billion worth of Bitcoin.

The money from the GBTC sale was used to buy a total of 32,041 Bitcoin which was priced at $65,685 at the time of the purchase. Greyscale and Genesis are both child companies to Digital Currency Group. This way, the company hopes to settle its outstanding debts to creditors.

Meanwhile, Coinbase, a rival crypto exchange, has commented that the sale of the shares would not impact the overall health of the crypto ecosystem.

Even though the shares were sold off to pay the creditors, the funds of the sales are likely to remain a part of the broader crypto landscape and not be moved into other investments, which means that the turbulences experiences by Genesis are unlikely to impact the broader crypto market any further.

The bankruptcy filing of Genesis under Chapter 11 in January 2023 came amid a lot of controversy in the sector, and not least the legal saga surrounding FTX, a prominent crypto exchange, and its now sentenced boss, Sam Bankman-Fried, who misused the company’s funds and triggered a market run which added to the griefs of the crypto community.

Greyscale and FTX’s misfires caused a dip in the value of Bitcoin and other cryptocurrencies throughout 2022 and 2023, but the market has rallied with BTC reaching its highest valuation in history, at $73,000 this year.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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