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With Coinbase’s recent announcement regarding the retention of proceeds within the crypto ecosystem, an intriguing Bitcoin acquisition story unfolds.
Genesis, a distressed crypto lending firm, reportedly exchanged approximately 36 million shares of the Grayscale Bitcoin Trust (GBTC) for additional Bitcoin (BTC), strategically addressing its creditor obligations.
Genesis executed the liquidation of GBTC shares on April 2, yielding around $58.50 per share as per a recent Bloomberg report.
This represents a significant surge from the initial share price of $38.50, secured when Genesis first sought approval from a US bankruptcy court on February 2.
The aggregate proceeds from the sale totaled $2.1 billion, empowering Genesis to secure 32,041 Bitcoin at a rate of $65,685 per Bitcoin on April 2. Presently, the value of these 32,041 Bitcoin stands at an impressive $2.18 billion.
Coinbase has provided assurance to the crypto community, stating that the sell-off’s impact on the market would be minimal.
It highlights that a considerable portion of the funds is expected to remain within the ecosystem, ensuring a balanced overall effect.
Genesis’s move aligns with its commitment to repay creditors, as stipulated by the bankruptcy plan, which permits the conversion of GBTC shares into Bitcoin or their outright sale for cash distribution.
This development emerges amid disputes from the Digital Currency Group (DCG) regarding Genesis’s proposed repayment plan. DCG, through its subsidiary Genesis, filed for Chapter 11 bankruptcy in January 2023, contending that the proposed plan might overcompensate lenders beyond their entitlement.