Genesis Capital Sets Sights on Massive $1.6 Billion Crypto

Genesis Global Capital has advanced in its bankruptcy proceedings, submitting a motion to the U.S. Bankruptcy Court for the Southern District of New York. 

The company seeks approval to liquidate approximately $1.6 billion in trust assets, a substantial portion comprising around $1.4 billion in Grayscale Bitcoin Trust (GBTC) assets and roughly $165 million from the Grayscale Ethereum Fund.

Genesis Capital’s Initiative

This strategic move is integral to Genesis Capital’s overall plan to handle its Chapter 11 bankruptcy cases, get its finances back on track, and get the best returns for its bondholders. 

At the heart of this plan is selling large amounts of cryptocurrency stocks connected to Grayscale’s Bitcoin and Ethereum funds.

Notably, these assets make up a big part of the cryptocurrency market. As of September 2023, the GBTC trust held 3.2% of all the Bitcoin that was in circulation.

The sale is one of the most important steps the company can take to fix its financial problems. Genesis’s management team and advisors aim to protect company assets and ensure a clear way for a fair and effective restructuring. They have had a lot of talks with creditors and other important people to try to agree, but it has been a slow process.

Due to complexities in the cryptocurrency industry and the possible effects on the market, the choice to sell these assets isn’t optimal. Genesis is determined to carry out the sale in a way that causes the least amount of trouble in the market and gets the best results for its creditors.

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