Crypto Lender Genesis Uses GBTC Share Sale to Repay Customers in Bitcoin

Genesis has acquired 32,041 bitcoins using proceeds from the sale of nearly 36 million Grayscale Bitcoin Trust (GBTC) shares.

According to Bloomberg Law, the sale of GBTC shares was finalized on April 2, as stated in court documents filed yesterday.

A New York bankruptcy court granted Genesis permission to sell GBTC shares, along with shares in Grayscale Ethereum trusts, on February 14. At the time of the bankruptcy filing, the value of Genesis’s GBTC shares was nearly $1.4 billion, while its Grayscale Ethereum Trust shares were valued at $165 million, and its Grayscale Ethereum Classic Trust shares at $38 million.

Genesis filed for Chapter 11 bankruptcy protection in January 2023.

At current prices, the purchased bitcoins are valued at over $2.17 billion, as reported by Coin Engineer’s Bitcoin Price Page. These funds are expected to be used for customer repayment.