Court Allows Genesis to Sell $1.3 Billion in GBTC Shares

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The bankruptcy court has granted Genesis Global Holdco’s request to sell 35 million GBTC, a lending platform, worth over $1.3 billion in order to satisfy creditors’ claims.

Genesis’s subsidiary is also planning to sell more than 11 million shares of two Grayscale Ethereum trusts, valued at over $200 million.

Digital Currency Group attempted to postpone the sale until the court decided on the debt repayment plan.

If the plan is rejected, the company may consider the sale of these trusts as premature. However, representatives of the company have stated that they would not be opposed to such a scenario.

In September 2023, Genesis filed a lawsuit against DCG, seeking payment of loans totaling over $600 million. In January 2024, Digital Currency Group announced that it had satisfied its obligations to creditors and had paid approximately $700 million to the lending platform.

Genesis disputed this. In the same month, Genesis reached a settlement with the SEC regarding its Earn staking program, in collaboration with Gemini.