$1.65 Billion in Bitcoin Will Be Sold by This Crypto Company

Genesis Global has received the green light from a bankruptcy court to sell approximately 36 million Grayscale Bitcoin Trust (GBTC) shares valued at over $1.65 billion.

This move is part of the bankrupt crypto lender’s comprehensive strategy to reimburse clients who lent it digital assets.

Genesis to Sell Grayscale Bitcoin Trust Shares

The approval, granted by Judge Sean Lane, paves the way for Genesis to convert these shares into Bitcoin or cash. Still, it must utilize the services of a broker to facilitate the process gradually. In addition to this, Genesis has laid out plans to liquidate Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) shares. These holdings are collectively worth more than $230 million.

Representing Genesis, Sean O’Neal revealed that the GBTC shares’ current valuation hovers around $1.65 billion. The move to redeem and potentially sell these shares has been met with mixed reactions.

Digital Currency Group (DCG), Genesis’ parent company, sought to postpone the redemptions. The firm argued that such actions could be premature. Essentially, it can be detrimental if the court later rejects Genesis’ debt repayment proposal. DCG’s apprehensions extend to the rapid unloading of shares, fearing it could depress prices and compromise potential recoveries for creditors.

Despite these concerns, Judge Lane affirmed Genesis’ autonomy in its Chapter 11 proceedings to decide the best course for asset liquidation. The strategy to sell assets, endorsed by Genesis creditors, aims to mitigate market impact by strategically coordinating sales through a broker.

“The Debtors are authorized, but not directed, to redeem, sell, or transfer the Trust Assets (or the proceeds thereof), in their reasonable business judgment, in accordance with the guidelines,” the court filing reads.

This development carries broader implications for the cryptocurrency market, particularly Bitcoin’s market value. For instance, technical analyst John Gregory noted that the impending sale could exert downward pressure on BTC. It currently faces resistance between $52,000 and $54,000. He suggested that a consolidation phase for Bitcoin could offer altcoins a window to gain momentum.

“$52,000 to $54,000 has some weekly and monthly resistance confluences for me. [I] would like to see BTC stop around here [and] consolidate, perhaps giving [altcoins] some room to party harder,” Gregory said.

Read more: Bitcoin Price Prediction 2024/2025/2030

The outcome of Genesis’ GBTC shares sell could signal pivotal shifts for investors and stakeholders across the cryptocurrency market.