Court Authorizes Genesis to Sell $1.3 Billion in GBTC Shares

The bankruptcy court has approved Genesis Global Holdco’s request to sell 35 million GBTC shares, valued at over $1.3 billion, to satisfy creditor claims, according to Bloomberg.

The subsidiary of DCG also plans to sell “more than 11 million shares of two Grayscale Ethereum trusts worth over $200 million.”

Digital Currency Group sought to delay the proposed transaction until the court decides whether to approve the debt repayment plan. If the plan is rejected, the holding company would consider the sale of the trusts premature, though they would not oppose such a scenario, representatives noted.

In September 2023, Genesis filed a lawsuit against DCG, demanding the parent company repay loans totaling over $600 million.

In January 2024, Digital Currency Group announced it had met its obligations to creditors, paying approximately $700 million to the lending platform. The latter disputed this.

Earlier in the same month, Genesis settled a case with the SEC regarding the joint staking program Earn with Gemini. The platform agreed to pay a $21 million fine after fully repaying its debts to creditors.

Previously, Genesis reached an agreement with the New York Department of Financial Services. It includes an $8 million fine, cessation of operations in the state, and relinquishment of its BitLicense.