I got Genesis Global, a cryptocurrency lending company Bankruptreceived bankruptcy court approval to sell approximately 36 million shares of Grayscale Bitcoin Trust (GBTC) for a total value of more than $1.65 billion.
Judge Sean Lane issued an order allowing Genesis to convert those shares into bitcoin or cash. However, the company should use the services of a brokerage firm to gradually ease the process.
Genesis also plans to sell shares of the Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG). The total value of these shares is more than $230 million.
Sean O'Neill, a spokesman for Genesis, explained that the current value of GBTC shares is approximately $1.65 billion. The decision to buy back and sell these shares was met with mixed reactions.
Digital Currency Group (DCG), Genesis' parent company, attempted to delay the repayment. The company says such action may be premature.
This could be damaging if a court later rejects Genesis' debt settlement offer. DCG is wary of selling shares quickly, fearing it will cause prices to fall and jeopardize creditors' chances of recovering money.
Despite these concerns, Judge Lin emphasized Genesis' independence in Chapter 11 by choosing the best asset liquidation option.
“The Debtors are permitted, but not required, to repurchase, sell or transfer the assets of the Fund (or the proceeds thereof) in accordance with their reasonable business judgment and in accordance with the Guiding Principles,” the court filing states.
The asset sale strategy is aimed at... With the support of creditors Genesis to mitigate market impact through strategic coordination of sales through the brokerage firm.
The impact of this move on the price of Bitcoin (BTC).
This development has wider implications for the digital currency market, especially for Bitcoin market value.
For example, technical analyst John Gregory noted that the upcoming sell-off could put downward pressure on Bitcoin.
Bitcoin is currently facing resistance between $52,000 and $54,000. Gregory suggested that Bitcoin's consolidation phase could give altcoins an opportunity to gain momentum.
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