Genius Group's Bitcoin Expansion Halted by US Court Ruling

Genius Group, a Singaporean artificial intelligence company, has been temporarily restricted from expanding its Bitcoin treasury following a US court ruling on a failed merger with Fatbrain AI. The legal action prevents the company from raising funds, issuing shares, or purchasing additional Bitcoin, thereby straining its cryptocurrency portfolio. The ongoing arbitration has forced Genius Group to sell some of its Bitcoin reserves, despite its intention to allocate most of its reserves to Bitcoin. This case underscores the growing conflicts between legal hurdles and corporate cryptocurrency strategies.

The legal limitation on Genius Group reflects a significant shift in the cryptocurrency industry, where companies are increasingly incorporating Bitcoin into their financial statements. The US court’s temporary injunction halts the company from selling stocks or raising capital, effectively stalling its ability to grow its Bitcoin reserves. This situation is part of a broader conflict stemming from a failed merger with Fatbrain AI, where Genius Group alleges fraud and has initiated arbitration proceedings. To maintain operations, the company has already sold some of its Bitcoin reserves and has not ruled out further sales.

Genius Group’s leadership argues that the court order prevents them from violating Singapore regulations by discontinuing employee share incentives. Meanwhile, shareholder claims and fraud allegations related to the merger continue to mount. Despite these challenges, Genius Group maintains its commitment to Bitcoin and plans to resume treasury growth once legally permitted. The unresolved corporate conflicts, cross-border regulations, and fluctuating assets create a complex legal landscape for cryptocurrency-focused companies.

Bitcoin’s price action has been volatile, with a recent rejection from $88,500 and a collapse below $84,000. The cryptocurrency is currently consolidating around $82,989, having bounced from $81,500, which has been identified as a crucial support level. If Bitcoin can hold above $82,500, it may attempt a rebound toward the $84,000 resistance level, which remains a significant barrier. A breakout above this level could push prices toward $86,000. However, technical indicators such as the RSI and MACD suggest reduced bullish momentum, pointing to potential consolidation.

If Bitcoin fails to maintain its current levels, another decline to $81,500 or even $80,000 is anticipated. Traders should watch for confirmation of either a breakout or further downside based on market structure. The future sessions will determine whether Bitcoin continues to slide or recovers. Failure to hold support could lead to more downside pressure, while a strong move above $84,000 with volume support would indicate a bullish reversal.

The current price action of Bitcoin exacerbates Genius Group’s situation. As Bitcoin struggles to maintain critical support levels, any forced sales from corporate treasuries could exacerbate downside risk. Price consolidation and reduced trading volumes suggest the market is losing momentum. If market sentiment turns pessimistic, it could limit recovery prospects for companies like Genius Group, which have significant Bitcoin reserve exposure. Genius Group remains restricted until legal clarity is restored, while the next major move for Bitcoin remains uncertain.