Bankrupt lending company Genesis reportedly transferred some 36 million shares of Grayscale Bitcoin Trust (GBTC) to acquire additional bitcoins in preparation for settling its debts with creditors.
According to a recent Bloomberg report on April 2, Genesis liquidated about 36 million GBTC shares, which at the time were valued at about $58.50 per share.
The share price has risen by about 50% since Genesis initially asked the U.S. bankruptcy court for permission to sell 36 million GBTC shares on February 2, when the share price was $38.50.
The total amount of the sale was $2.1 billion, which allowed the purchase of 32,041 Bitcoins on April 2 at a price of $65,685. Genesis will use Bitcoin to continue its efforts to repay creditors.
At the time of publication, 32,041 Bitcoin is currently worth $2.18 billion.
Recently, cryptocurrency exchange Coinbase assured the community that the sell-off is not expected to have a broader impact on the cryptocurrency market.
It explained that the rules of the bankruptcy plan allowed Genesis to either convert GBTC shares into underlying Bitcoin assets on behalf of creditors, or to sell the shares directly and distribute the cash.
This came after Digital Currency Group (DCG) argued that its Genesis subsidiary offered to pay its customers more than they were owed.
