Genesis, a bankrupt crypto lender, has successfully sold its shares in Grayscale Bitcoin Trust (GBTC) and utilized the earnings to acquire 32,041 bitcoins, as indicated by court documents filed on Friday.
The transaction for selling GBTC shares was finalized on April 2, according to the documents. Earlier, on February 15, Genesis was granted approval by a New York bankruptcy court to sell approximately 36 million GBTC shares, along with additional shares from two Grayscale Ethereum trusts.
During the application process, the estate’s lawyers assessed the collective value of the Grayscale shares at $1.6 billion. This included nearly $1.4 billion in GBTC, $165 million in Grayscale Ethereum Trust, and $38 million in Grayscale Ethereum Classic Trust.
With the current price of bitcoin hovering around $67,500, the bitcoins acquired from the GBTC shares alone are valued at nearly $2.2 billion. As for the next steps, Genesis plans to distribute these bitcoins to its Gemini Earn creditors.
Genesis’ completion of this transaction signifies a significant step in its redemption process, whereby it has effectively converted its GBTC shares into a substantial bitcoin holding.
