Key Takeaways
- Genius Group plans to expand its Bitcoin treasury to $100 million through a rights offering and additional financing.
- Shareholders can purchase additional shares at $0.50 each, with rights expiring on February 14, 2025.
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Genius Group, an AI-powered education company, is doubling down on its Bitcoin strategy. The company announced Friday a rights offering and plans for additional loans to expand its Bitcoin holdings to $100 million.
The right offering provides existing shareholders with the opportunity to purchase additional ordinary shares at a discounted price of $0.50 per share, as noted in the announcement.
Shareholders of record as of January 24, 2025, received one transferable right for each share they held. These rights can be exercised to purchase one new ordinary share at the subscription price.
Shareholders who fully exercise their basic subscription rights will have the opportunity to subscribe to additional shares that remain unsubscribed. This allows interested investors to potentially increase their stake in the company. However, shareholders who sell any of their rights will forfeit their eligibility for the oversubscription privilege.
The rights are currently trading on the NYSE American under the symbol “GNS RT” and will continue to trade until February 13, 2025.
Genius Group intends to use all net proceeds from the rights offering to expand its Bitcoin treasury. If fully subscribed, the offering is expected to raise up to $33 million.
The company also aims to secure additional loan financing of up to $22 million, potentially increasing its Bitcoin holdings from approximately $45 million to $100 million.
Genius Group first revealed plans to allocate 90% or more of its reserves to Bitcoin last November, 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.
Last month, Genius Group’s stock (GNS) surged by 11% as the company increased its Bitcoin treasury to $30 million, reporting a 177% rise in net asset value and introducing BTC Yield as a performance metric.
Despite the positive momentum, the company’s shares opened trading on Friday at $0.46, reflecting an 8% decline over the past 24 hours, per Yahoo Finance.
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