Buy 2.1 billion Thai Baht worth of Bitcoin! Genesis sells GBTC to settle debts and then buys Bitcoin.

The cryptocurrency lending company Genesis, which had previously declared bankruptcy, purchased $2.1 billion worth of Bitcoin after selling its shares in the Grayscale Bitcoin Trust GBTC. This move was made to partially repay the company's creditors and has garnered significant attention in the market.

Bitcoin ETF sees continuous outflows for a week, Bloomberg analysts attribute it to Genesis selling for cash.

Genesis Approved by Court to Sell

According to Bloomberg, Genesis sold approximately 36 million shares of GBTC on April 2nd at a price of around $58.50 per share. The sale was carried out after receiving approval from the U.S. bankruptcy court on February 2nd when the price of GBTC was $38.50 per share. Since then, the stock price has risen by approximately 50%.

Genesis has been granted court permission to sell over $1.3 billion worth of GBTC.

Use of Funds: Purchase of Bitcoin

The $2.1 billion raised by Genesis was used to purchase 32,041 bitcoins at a price of $65,685 each. Genesis plans to use these bitcoins to continue repaying its creditors. Currently, the market value of these bitcoins has reached $2.18 billion.

Exchange Coinbase stated that this large-scale sell-off will not have a widespread impact on the crypto market. Coinbase pointed out that most of the funds are expected to remain within the crypto ecosystem, maintaining a neutral impact on the overall market.

Is the GBTC selling spree over? Will Bitcoin see a halving rally?

According to the bankruptcy plan, Genesis can choose to convert GBTC shares into Bitcoin, hold them on behalf of creditors, or sell the shares directly and distribute cash. In addition, Digital Currency Group (DCG) claims that the payment scheme proposed by its subsidiary Genesis will result in customers receiving returns exceeding what they are actually entitled to.

In response to the rising coin prices, Genesis seeks to repay customers more, with DCG shouting "violation of U.S. bankruptcy law."

In conclusion, the liquidation of GBTC by Genesis has raised concerns in the market and is likely to have an impact on the coin price market; following the news of buying back Bitcoin, Bitcoin had also returned to the $68K level at the time of publication.