Genius Group increases Bitcoin Treasury to total purchase of 420 Bitcoin for $40 million.

Rhea-AI Summary

Genius Group (NYSE: GNS) has expanded its Bitcoin holdings to 420 Bitcoin, representing a total investment of $40 million at an average price of $95,912 per Bitcoin. This investment aligns with the company's 'Bitcoin-first' strategy announced on November 12, 2024, which commits to holding 90% or more of current and future reserves in Bitcoin, targeting $120 million in total Bitcoin holdings.

The company has funded these purchases through various sources, including company reserves, an ATM facility, and $19 million in debt financing from crypto-backed loan platform Arch Lending. Additionally, GNS recently held an investor call on January 15, 2025, discussing a planned rights offering to raise up to $50 million in additional financing for further Bitcoin purchases.

Positive

• Accumulated substantial Bitcoin position of 420 BTC worth $40 million
• Successfully secured $19 million in debt financing for Bitcoin purchases
• Planning to raise additional $50 million through rights offering

Negative

• Taking on significant debt ($19 million) to fund Bitcoin purchases
• High average purchase price of $95,912 per Bitcoin creates potential downside risk
• 90% reserve allocation to Bitcoin represents high concentration risk

Insights

Financial Analyst

This $40 million Bitcoin acquisition represents a substantial commitment, with Genius Group accumulating 420 BTC at an average price of $95,912 per coin. The aggressive treasury strategy, targeting 90% of reserves in Bitcoin, signals a significant pivot in corporate treasury management.

The financing structure reveals a mixed approach: utilizing existing reserves, ATM facilities and notably $19 million in crypto-backed loans through Arch Lending. This leveraged position adds risk but also potential upside exposure. The planned $50 million rights offering would further expand their Bitcoin holdings, potentially reaching $90 million in total Bitcoin treasury assets.

For a company with a market cap of approximately $14.6 million, this Bitcoin treasury strategy represents an outsized bet relative to their market value. The debt financing component particularly warrants attention, as crypto-backed loans can face margin calls during Bitcoin price volatility. Think of it as using a mortgage to buy more house than you could afford with cash - it amplifies both potential gains and risks.

Cryptocurrency Expert

The timing of GNS's Bitcoin accumulation is noteworthy, occurring at historically high price levels averaging $95,912 per BTC. This positions them as a high-conviction Bitcoin treasury player, though the entry price point raises questions about near-term value proposition.

The strategy of becoming a "Bitcoin-first" education group represents an interesting hybrid model - combining educational services with significant Bitcoin exposure. It's similar to how MicroStrategy transformed from a business intelligence company to a quasi-Bitcoin ETF. For everyday investors, imagine this as buying a house that comes with a large gold vault inside - you're getting both operational business value and monetary asset exposure.

The accelerated timeline of accumulating 420 BTC within three months demonstrates aggressive execution, though the high-price environment suggests potential FOMO-driven decision making. The crypto-backed loan structure through Arch Lending introduces additional complexity and risk factors that could impact company stability during major market corrections.

SINGAPORE, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading AI-powered, Bitcoin-first education group, today announced that it had increased its Bitcoin purchases for its Bitcoin Treasury by an additional $5 million to 420 Bitcoin for $40 million, at an average price of $95,912 per Bitcoin.

The total purchase of $40 million of Bitcoin has been made within three months of the Company’s announcement on November 12, 2024 of its “Bitcoin-first” strategy that it is committing 90% or more of its current and future reserves to be held in Bitcoin, with an initial target of $120 million in Bitcoin. To date, the company has funded its Bitcoin purchases from its reserves, use of its ATM facility and $19 million in debt financing with crypto-backed loan platform Arch Lending.

The company held an investor call on January 15, 2025 related to its planned rights offering to raise up to $50 million in additional financing to purchase Bitcoin for its Bitcoin Treasury, pending filing of its prospectus supplement. The recording, presentation and script may be found by visiting 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.

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

FAQ

How many Bitcoin does Genius Group (GNS) currently hold in its treasury?

Genius Group currently holds 420 Bitcoin in its treasury, purchased at an average price of $95,912 per Bitcoin, totaling $40 million in investment.

What is Genius Group's (GNS) target for Bitcoin treasury holdings?

Genius Group's target is to hold $120 million in Bitcoin as part of its Bitcoin-first strategy, committing to hold 90% or more of its current and future reserves in Bitcoin.

How did Genius Group (GNS) finance its $40 million Bitcoin purchase?

GNS financed its Bitcoin purchases through company reserves, an ATM facility, and $19 million in debt financing from crypto-backed loan platform Arch Lending.

What is the planned rights offering amount for GNS's Bitcoin treasury expansion?

Genius Group is planning a rights offering to raise up to $50 million in additional financing for Bitcoin purchases.