- Genesis filed a petition in court to sell assets worth $1.6 billion.
- The company noted that permission must be provided in the near future due to market volatility.
- Genesis says it is trying to maximize the amount that will be distributed to creditors in the future.
Failed cryptocurrency company Genesis asks to allow it to sell trust assets worth $1.6 billion. Representatives of the company sent a corresponding request to the US Bankruptcy Court.
According to the document, Genesis intends to sell securities of such funds as:
- Grayscale Bitcoin Trust (GBTC);
- Grayscale Ethereum Trust (ETHE);
- Grayscale Ethereum Classic Trust (ETCG).
Company representatives emphasized that permission must be obtained as soon as possible due to possible instability of the digital asset market in the near future. Genesis says it is trying to maximize funds through the sale of trust assets.
Court documents say GBTC shares make up about 87% of the company's total portfolio. The value of assets is estimated at $1.38 billion. At the same time, ETHE securities account for about 10% ($169 million), and ETCG closes this list with a share of shares of 3% ($38 million).
Genesis notes that following the US Securities and Exchange Commission's (SEC) approval of spot Bitcoin ETFs, it was able to sell GBTC shares directly. At the same time, the assets of the ETHE and ETCG funds can be sold only with the written permission of the sponsor.
Let us remind you that we wrote that Genesis made a deal with the SEC. The company will pay a $21 million fine.