Summary
Genesis Global, a bankrupt crypto lender, has received approval from a bankruptcy court to sell approximately 36 million Grayscale Bitcoin Trust (GBTC) shares worth over $1.65 billion as part of its strategy to reimburse clients. The company also plans to liquidate shares of Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) collectively valued at over $230 million. Despite concerns about potential market impact and depressions in prices, the court has granted Genesis autonomy in deciding the best course for asset liquidation. The sale of GBTC shares could have broader implications for the cryptocurrency market, including downward pressure on Bitcoin’s market value.
Key Points
1. Genesis Global has received approval from a bankruptcy court to sell approximately 36 million Grayscale Bitcoin Trust (GBTC) shares, valued at over $1.65 billion. This is part of their strategy to reimburse clients who lent them digital assets.
2. In addition to selling GBTC shares, Genesis also plans to liquidate Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) shares, collectively worth more than $230 million.
3. There are concerns about the potential market impact of the sale, with fears that it could depress prices and compromise potential recoveries for creditors. However, Judge Lane has affirmed Genesis’ autonomy to decide the best course for asset liquidation and mitigate market impact through strategic coordination with a broker.