- Genesis sold $2.5 billion worth of GBTC shares last week
- The proceeds were used to acquire over 32,000 bitcoins, which will be used to compensate Gemini Earn customers
- Genesis has now disposed of all its GBTC shares, progressing towards fulfilling agreements with Gemini and Digital Currency Group
Bankrupt crypto lender Genesis divested itself of some $2.5 billion worth of Grayscale Bitcoin Trust (GBTC) shares last week, court records released on Friday showed. Proceeds from the sale, which was approved in February, were used to pick up over 32,000 bitcoins, which will be used to pay off Gemini Earn customers. The sale means that Genesis no longer holds any GBTC shares and is well on its way to honoring the recent agreement drawn up between itself, Gemini, and Digital Currency Group (DCG).
Sale Approved in February
Genesis obtained approval from a New York bankruptcy court to liquidate the shares seven weeks ago, along with additional shares in two Grayscale Ethereum trusts. This was despite objections from its parent company, Digital Currency Group, which attempted to delay the proposed sale until after the bankruptcy court decided whether or not to approve its subsidiary’s debt repayment plan.
Judge Sean Lane granted Genesis permission to sell the shares, overriding DCG’s concerns and suggesting that the repayment plan will be confirmed.
Gemini Earn Customers to Benefit
The sale of the shares was completed on April 2, right as the value dropped from $62 to $57. This puts the sale value at between $2.2 and 2.5 billion, all of which went on procuring 32,041 bitcoins, which will be used as part of the payouts to Gemini Earn creditors; at the end of February, a decision was reached that will see Gemini Earn customers receive 100% payouts in crypto, 97% of which was slated to arrive in the coming weeks.
This, undoubtedly, refers to the GBTC share sale, the proceeds of which can now be sent back to the beleaguered Gemini Earn customers, who have been waiting 15 months to get access to their bitcoins–bitcoins that have increased in value by almost 5x in the time they have been fretting over them.
Once the repayment plan is ratified by the court, the repayment process can begin.
