Genius Group Adopts Bitcoin Treasury Reserve Strategy

Rhea-AI Summary

Genius Group (NYSE American: GNS) has announced a new 'Bitcoin-first' strategy, committing to hold 90% or more of its reserves in Bitcoin. The company plans to utilize its $150 million ATM facility to acquire an initial $120 million in Bitcoin as its primary treasury reserve asset. The strategy includes launching a Web3 Wealth Renaissance education series and enabling Bitcoin payments on their Edtech platform. The company reports $23 million in audited annual revenue for 2023 and total assets of $43 million, while currently facing a market capitalization of $12 million. Genius Group has pending litigation against alleged market manipulators, with estimated damages over $250 million.

Positive

• Plans to acquire $120 million in Bitcoin using existing ATM facility
• Reported $23 million in annual revenue for 2023
• Total assets of $43 million
• Strategic expansion into blockchain technology and cryptocurrency education
• 0% capital gains tax advantage due to Singapore incorporation

Negative

• Current market capitalization of only $12 million, significantly below reported assets
• Share price dropped to under $0.60
• Ongoing legal battle against market manipulators

Insights

Financial Analyst

The adoption of a Bitcoin-first treasury strategy by Genius Group represents a significant shift in corporate treasury management. With plans to allocate $120 million of their $150 million ATM facility to Bitcoin, this represents a substantial commitment that could dramatically impact their balance sheet. While following MicroStrategy's playbook could provide hedging against inflation and potential upside, it also introduces significant volatility risk. The company's current market cap of $12 million is notably lower than their reported $23 million revenue and $43 million in assets, suggesting severe market undervaluation or potential underlying issues. The zero capital gains tax advantage in Singapore could benefit shareholders if the Bitcoin strategy succeeds, but the high concentration in a volatile asset poses substantial risks.

Blockchain Technology Expert

This strategic pivot goes beyond mere Bitcoin investment, incorporating blockchain technology into their core business model. The integration of Bitcoin payments into their Edtech platform and the launch of Web3 education series indicates a comprehensive approach to blockchain adoption. However, the timing of this announcement, coupled with their ongoing market manipulation litigation and depressed stock price, suggests this could be a tactical move to regain market confidence. The addition of blockchain experts to the board adds credibility, but the 90% reserve allocation to Bitcoin is notably aggressive compared to other public companies' crypto strategies. The educational component could provide a competitive advantage in the growing Web3 space, but execution will be critical.

SINGAPORE, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading AI-powered education and acceleration group, today announced that its Board has adopted a global “Bitcoin-first” strategy with Bitcoin to be the primary treasury reserve asset. The Board’s adoption of this new policy follows the recent restructuring of its Board to include experts in Blockchain and Web3 technologies.

The Company’s Board of Directors have approved the following Bitcoin-first strategy:

1. To commit 90% or more of our current and future reserves to be held in Bitcoin
2. Commence utilizing our $150 million ATM¹to acquire an initial target of $120 million in Bitcoin, to be held for the long term as its primary treasury reserve asset
3. Launch our Web3 Wealth Renaissance education series for students to accelerate their understanding of Bitcoin, Cryptocurrency and Blockchain with Genius Group’s AI-powered guides.
4. Enable Bitcoin payments globally on the Company’s Edtech platform.

Thomas Power, Genius Group Director and previously Board Director at Team Blockchain and the Blockchain Industry Compliance and Regulation Association (BICRA), said “Genius Group is focused on educating students for the exponential technologies of the future. We see Bitcoin as being the primary store of value that will power these exponential technologies. The compelling case that we believe Michael Saylor and Microstrategy have made for public companies to invest in Bitcoin as their primary treasury reserve asset is one that we fully endorse.”

“We believe with our Bitcoin-first strategy, we will be among the first NYSE American listed companies to fully embrace Microstrategy’s Bitcoin strategy, for the benefit of our shareholders.”

Ian Putter, Genius Group Director and previously Head of Blockchain Domain at Standard Bank and founder of the Blockchain Research Institute Africa, a think tank that collaborated with research institutes across the globe to identify blockchain use-cases relevant to Africa, said “Genius Group has an approved $150 million ATM funding facility, and the Board intends to put our future earnings and capital raising to good use in building a sizeable reserve in Bitcoin, to strengthen our balance sheet and shareholder returns. Being a Singapore-incorporated company, with 0% capital gains tax, gives us an additional advantage in our Bitcoin-first strategy.”

Roger Hamilton, Genius Group’s CEO, said “Genius Group has been in a two-year public battle against market manipulators, in which it has seen its share price drop to under $0.60 and its market capitalization drop to $12 million, despite reporting audited annual revenue in 2023 of $23 million and total assets of $43 million.”

“The Company has pending litigation against alleged market manipulators, led by Wes Christian, with alleged damages estimated at over $250 million, and we believe every step the Company can make to embrace transparent, decentralized, blockchain-based technology is an opportunity to reset Genius Group’s share price commensurate with its value.”

“We believe a new type of future-focused, AI-driven, blockchain-based public listed companies can bridge the divide for investors between the current, centralized and regulated world of NYSE, NASDAQ and other stock markets with the future promise of decentralized, exponential economies. Genius Group’s unique position of already educating for the future gives us an opportunity to bring a layer of added value through education, where we prepare the next generation for a world in which how they earn and learn are dramatically different.”

Genius Group will be holding a GeniusLIVE podcast featuring Roger Hamilton, Thomas Power and Ian Putter which will go into detail on Genius Group’s AI-powered, Bitcoin-first plan at 9am ET on Tuesday, 19 November 2024. To register, visit https://www.geniusgroup.ai/

About Genius Group

Genius Group (NYSE: GNS) is a leading provider of AI powered, digital-first education and acceleration solutions for the future of work. Genius Group serves 5.4 million users in over 100 countries through its Genius City model and online digital marketplace of AI training, AI tools and AI talent. It provides personalized, entrepreneurial AI pathways combining human talent with AI skills and AI solutions at the individual, enterprise and government level. To learn more, please visit www.geniusgroup.net.

For more information, please visit https://www.geniusgroup.net/

Forward-Looking Statements 

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will”, “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company's Annual Reports on Form 20-F, as may be supplemented or amended by the Company's Reports of a Foreign Private Issuer on Form 6-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise. No information in this press release should be construed as any indication whatsoever of the Company’s future revenues, results of operations, or stock price.

Contacts
MZ Group - MZ North America
(949) 259-4987
GNS@mzgroup.us
www.mzgroup.us

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¹ Availability under the Form F-3 “shelf” is subject to limitations under Instruction 1.B.6. of Form F-3 until the Company reaches a market capitalization of $75 million.

FAQ

What is Genius Group's (GNS) new Bitcoin strategy?

Genius Group plans to hold 90% of its reserves in Bitcoin and utilize its $150 million ATM facility to acquire an initial $120 million in Bitcoin as its primary treasury reserve asset.

How much revenue did Genius Group (GNS) report for 2023?

Genius Group reported audited annual revenue of $23 million for 2023.

What is the current market capitalization of Genius Group (GNS)?

Genius Group's market capitalization has dropped to $12 million, despite having total assets of $43 million.

What is the value of Genius Group's (GNS) pending litigation against market manipulators?

Genius Group has pending litigation with alleged damages estimated at over $250 million.