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Genius Group Boosts Bitcoin Reserves to $100M with $33M Rights Issue

Coin WorldFriday, Jan 31, 2025 2:04 pm ET

1min read

Genius Group, a pioneering AI-powered education company, has announced a significant move to bolster its Bitcoin reserves. The company plans to raise $33 million through a rights issue, aiming to expand its Bitcoin holdings to $100 million. This strategic decision aligns with Genius Group's previously stated goal of allocating a substantial portion of its reserves to Bitcoin.

The rights issue, launched on Friday, offers existing shareholders the opportunity to purchase additional ordinary shares at a discounted price of $0.50 per share. Shareholders of record as of January 24, 2025, received one transferable right for each share they held, enabling them to purchase one new ordinary share at the subscription price. Shareholders who fully exercise their basic subscription rights may also subscribe to additional shares that remain unsubscribed, potentially increasing their stake in the company. However, selling any of the rights will forfeit the eligibility for the oversubscription privilege.

Genius Group intends to use 100% of the net proceeds from the rights offering to purchase Bitcoin for its Bitcoin Treasury. If the offering is fully subscribed, the proceeds are expected to reach up to $33 million. Additionally, the company aims to secure additional loan financing of up to $22 million, which could potentially increase its Bitcoin holdings from approximately $45 million to $100 million.

Last November, Genius Group announced plans to allocate 90% or more of its reserves to Bitcoin, with an initial target of $120 million. If both the rights offering and the loan financing are fully subscribed, the company will achieve over 80% of its goal. This strategic move demonstrates Genius Group's commitment to cryptocurrency and its potential role in the company's future growth.

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