Genesis gets court approval to offload $1.6B Grayscale shares

A lawyer for Genesis put the value of the Grayscale shares around $1.6 billion

article-image

Genesis and Adobe Stock modified by Blockworks

share

A judge on Wednesday granted a motion from Genesis to allow the bankrupt lender to sell its shares of Grayscale’s bitcoin ETF (GBTC).

The motion allows the debtors to begin selling the shares at their discretion, and does not set up a timeline. US bankruptcy judge Sean Lane also overruled a request from Digital Currency Group to consult on the shares.

DCG is “not in an ideal position” to offer “advice untainted by its own interest,” Judge Lane said at the hearing. He added that he didn’t fault DCG for looking out for its own interest, however.

Judge Lane added, as part of his approval, that the debtors can convert the shares to bitcoin or cash. A lawyer for Genesis pegged the value of the Grayscale shares at $1.6 billion.

According to the Wednesday hearing, the bankrupt lender — through Chapter 11 — is able to decide how to sell the assets and can work with a broker to make decisions on the sales. 

Genesis filed a motion to sell around $1.3 billion of GBTC, as well as its shares in Grayscale’s Ethereum Trust (ETHE) and Grayscale’s Ethereum Classic Trust (ETCG).

Read more: Genesis wants to sell $1.3B GBTC

According to an early February filing, the bankrupt lender owns 35 million shares of GBTC, eight million shares of ETHE and roughly $3 million of ETCG.

At the time of publication, GBTC traded around $46 a share.

Lawyers representing the debtors said that the timing of the motion came after the Securities and Exchange Commission approved a slew of spot bitcoin ETFs in early January. 

Following the initial filing by Genesis, Digital Currency Group filed an objection to the confirmation plan. DCG is the parent company of the brand.

The proposed plan, DCG said, “pays unsecured creditors hundreds of millions of dollars more than the full amount of their petition date claims” and “disproportionately favors a small controlling group of creditors over others.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

As part of the #Breakout2024 plans, Radix has introduced Token Trek

article-image

House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January

article-image

Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do

article-image

And, weeks of a potential crypto ETF decision are no stranger to chaos

article-image

The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month

article-image

More than half of Solana transactions fail