Court rules Genesis can sell over $1.3 billion worth of GBTC shares: Bloomberg
Quick Take
- Genesis has been granted permission to sell about 35 million shares in Grayscale’s GBTC fund, which is worth over $1.3 billion.
A bankruptcy court has ruled that Genesis Global Holdco LLC can sell about 35 million shares in Grayscale's GBTC fund, which is currently worth more than $1.3 billion, according to Bloomberg.
On Wednesday, Judge Sean Lane said Genesis could convert its shares in GBTC into either bitcoin or cash, the report said. Last month, Grayscale's flagship GBTC fund, which converted to a spot bitcoin ETF, began trading. The firm's spot bitcoin ETF has led all others in terms of total trading volume after it officially launched last month. The ETF has shed more than $6 billion since then, according to CoinShares.
Genesis, which is a subsidiary of Digital Currency Group, also plans to sell "more than 11 million shares in two Grayscale Ethereum Trusts worth more than $200 million," the report also said.
Digital Currency Group, the parent company for Genesis, tried to delay the proposed sale until the court decides whether to approve a debt repayment plan. DCG had said it was not against selling the shares, but said the sales could be premature if the judge rejects the plan, according to Bloomberg.
DCG did not immediately respond to a request for comment to The Block.
Genesis paying SEC fine
Genesis also agreed earlier this month to pay a $21 million fine to the Securities and Exchange Commission to settle the agency's lawsuit against the company for operating the Gemini Earn program. The settlement will resolve a civil action brought against both Gemini and Genesis a year ago in which the two companies were charged with the unregistered offer and sale of securities to retail investors through a Gemini crypto lending program.
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