Summary
TLDR: A U.S. bankruptcy judge has granted Genesis permission to sell $1.6 billion worth of GBTC shares to repay creditors, despite objections from parent company DCG. Genesis plans to use the proceeds to repay customers and avoid monthly fees. This is part of Genesis’ broader liquidation plan, with a future court hearing scheduled for February 26. The approval may lead to more selling pressure on GBTC, which has been dominant in the crypto space.
Key Points
1. A U.S. bankruptcy judge granted Genesis permission to sell $1.6 billion worth of its Grayscale Bitcoin Trust (GBTC) shares, along with shares in Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) to repay creditors.
2. Digital Currency Group (DCG), Genesis’ parent company, objected to the sale, arguing that it disproportionately favored a small group of creditors and overpaid them due to the rise in prices of digital assets like Bitcoin and Ethereum since Genesis went bankrupt.
3. Despite objections from DCG, the judge approved the sale, which will help Genesis repay customers and avoid monthly fees associated with trust agreements as part of its broader liquidation plan.