Genesis spends over $2 billion to acquire Bitcoin to repay customers for GBTC shares
- Crypto lender Genesis has purchased 32,041 Bitcoins to repay customers by redeeming Grayscale BTC shares.
- As per a court filing, the sale of GBTC was completed on April 2.
- Genesis has purchased Bitcoin at an average price of $65,685.
Genesis, a crypto brokerage for institutional investors, has to repay customers by selling GBTC shares, according to an April 2 filing. The firm purchased 32,041 BTC at an average price of $65,685, spending over $2.17 billion.
Genesis to pay back customers in Bitcoin
The bankrupt crypto lender received permission from a New York bankruptcy court to sell GBTC shares and pay back customers. The BTC acquired by Genesis will be used to pay back customers.
Genesis had filed for bankruptcy in January 2023.
Gemini and Genesis had reached an in principle settlement late in February, and under the terms of settlement, the former agreed to distribute $1.8 billion to users affected by Genesis’s Earn service.
On February 14, Genesis received permission to sell the GBTC shares, in addition to Grayscale Ethereum trust shares. During the time of application these shares were valued at nearly $1.4 billion and Grayscale’s Ethereum shares at $165 million.
The firm has purchased 32,041 BTC to cover for the sale of nearly 36 million GBTC shares. The details were revealed in a court filing, as reported by Bloomberg Law. Originally, Genesis planned to distribute the tokens to Gemini Earn creditors.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
