According to Bloomberg, the bankruptcy court ruled that Genesis Global Holdco LLC can sell about 35 million shares in Grayscale’s GBTC fund, which are now worth more than $1.3 billion.
On Wednesday, Judge Sean Lane said Genesis could convert GBTC shares into bitcoin or cash. Grayscale’s flagship GBTC fund, which converted to a spot Bitcoin ETF last month, has begun trading. The company’s spot Bitcoin ETF has led all other ETFs in terms of total trading volume since its official launch last month. The ETF has since lost more than $6 billion, according to CoinShares.
Genesis, a subsidiary of Digital Current Group, also plans to sell “more than 11 million shares of two Grayscale Ethereum Trusts worth more than $200 million,” the report said. Yes.
Genesis’ parent company, Digital Currency Group, sought to delay the proposed sale until the court decided whether to approve the debt repayment plan. According to Bloomberg, DCG said it was not opposed to selling the stock, but said the sale could be premature if a judge rejects the plan.
DCG did not immediately respond to a request for comment from The Block.
Genesis pays fine to SEC
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 over its operation of the Gemini Earn program. The settlement will resolve civil lawsuits filed against Gemini and Genesis a year ago. The two companies were accused of unregistered offers and sales of securities to retail investors through the Gemini cryptocurrency lending program.
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.