Genius Group files Rights Offering Prospectus Supplement to increase Bitcoin Treasury

Rhea-AI Summary

Genius Group (NYSE American: GNS) has filed a Prospectus Supplement for its previously announced rights offering, with the entirety of net proceeds designated for Bitcoin purchases to establish its Bitcoin Treasury. The company, which positions itself as an AI-powered, Bitcoin-first education group, has made the prospectus available online along with a shareholder guide, FAQs, and recent investor materials.

The company has scheduled an investor call and webcast for January 22, 2025, at 6:00 PM ET, where CEO Roger Hamilton will discuss the rights offering, the company's Bitcoin Treasury Strategy, and its 2025 outlook. The presentation materials and recording will be accessible on the company's investor relations website following the live event.

Positive

• 100% of net proceeds will be used to establish a Bitcoin Treasury
• Clear strategic direction towards Bitcoin-first approach

Negative

• Potential dilution for existing shareholders through rights offering

Insights

Financial Analyst

This strategic pivot by Genius Group represents a bold but highly risky move in corporate treasury management. The company's decision to allocate all proceeds from its rights offering to Bitcoin acquisition marks an unusual approach for an education technology company, potentially transforming it into a hybrid education-crypto play.

The rights offering structure is particularly noteworthy as it gives existing shareholders the first opportunity to participate, potentially preventing dilution if they exercise their rights. However, this strategy essentially ties the company's future to Bitcoin's performance, which introduces several critical considerations:

• The company is effectively transforming part of its balance sheet from stable fiat currency to a highly volatile digital asset
• This move could significantly impact the stock's risk profile, potentially making it behave more like a Bitcoin proxy than a pure education technology investment
• The timing coincides with increased institutional interest in Bitcoin, particularly following spot ETF approvals, though this doesn't guarantee favorable outcomes

For investors, this development fundamentally changes the investment thesis. The stock may now appeal to those seeking indirect Bitcoin exposure through a listed company, but could deter investors who originally bought into the education technology story. The lack of disclosure about the specific amount to be raised and the intended Bitcoin allocation strategy adds another layer of uncertainty.

In simpler terms: Imagine a school deciding to put all its newly raised money into Bitcoin instead of traditional investments. While this could pay off if Bitcoin's value increases, it's like putting all your eggs in one very volatile basket. This is especially unusual for an education company, as most prefer to maintain more stable, traditional treasury management approaches.

SINGAPORE, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading AI-powered, Bitcoin-first education group has filed its Prospectus Supplement for its recently announced rights offering, with 100% of net proceeds going towards buying Bitcoin for its Bitcoin Treasury.

The Prospectus Supplement can be viewed at this link.

The Company has provided a guide for shareholders on the rights offering, together with links to the company’s recent Investor Call, Investor Presentation and FAQs which can be viewed here.

The Company will conduct an investor call and webcast to discuss the rights issue, together with the Company’s Bitcoin Treasury Strategy and 2025 outlook. The call will take place on Wednesday, January 22, 2025, at 6.00pm Eastern Time and will be hosted by the Company’s CEO, Roger Hamilton.

The live webcast of the call, and subsequent replay, will be available at this link.

A link to the script, investor deck and recording will be available after the live webcast at https://ir.geniusgroup.net/

About Genius Group

Genius Group (NYSE: GNS) is a Bitcoin-first business delivering AI powered, 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. This communication is not an offer to sell or the solicitation of an offer to buy any securities. Any such offer can only be made by means of a prospectus. The prospectus is available at https://ir.geniusgroup.net/sec-filings/all-sec-filings##document-716-0001493152-25-003099-2 or by contacting the contact set forth below.

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

FAQ

How will GNS use the proceeds from its 2025 rights offering?

Genius Group will use 100% of the net proceeds from the rights offering to purchase Bitcoin for its Bitcoin Treasury.

When is Genius Group's investor call to discuss the Bitcoin Treasury Strategy?

The investor call is scheduled for January 22, 2025, at 6:00 PM Eastern Time.

What is GNS's new strategic focus according to the January 2025 announcement?

Genius Group is positioning itself as an AI-powered, Bitcoin-first education group.

How can shareholders participate in GNS's 2025 rights offering?

Shareholders can access the Prospectus Supplement and shareholder guide available on the company's website for detailed information about participating in the rights offering.