Genesis, which is having financial issues, is seeking permission from the court to sell off a sizable amount of its digital currency holdings, with a target price of about $1.4 billion in shares of GBTC.
Crypto lender Genesis’s move comes while the company is navigating bankruptcy procedures to sell off assets and regain stability.
To help with its financial difficulties, Genesis is asking the court to approve the sale of $1.4 billion worth of assets, including a sizable amount of its GBTC shares.
The crypto lender hopes to ease its financial burden and create a path for recovery during bankruptcy proceedings by selling its holdings.
The market for Bitcoin (BTC) is expected to be impacted by Genesis’s planned sale of GBTC shares, especially in light of GBTC’s recent transformation into a more widely available Bitcoin ETF.
To make matters worse for Genesis, there is a disagreement regarding GBTC shares that were used as security in a transaction with Gemini.
A legal dispute over collateral rights has come up as a result of Gemini’s ownership claims over these shares, following Genesis’s breach of the agreement.