- Genesis sold GBTC to acquire BTC amid financial challenges and potential bankruptcy
- Whales have been accumulating BTC ahead of the halving
Genesis, a crypto-lending company, has been grappling with financial challenges and potential bankruptcy for over a year now. As part of its strategy to address these issues, Genesis decided to offload its Grayscale Bitcoin Trust (GBTC) holdings to acquire more Bitcoin [BTC], presumably to strengthen its financial position.
The reason behind Genesis’s recent move?
According to a Bloomberg report, Genesis sold off around 36 million shares of GBTC to raise funds for acquiring more BTC. This move was likely prompted by the desire to capitalize on the recent surge in Bitcoin prices, as well as to raise funds to settle debts with creditors.
Remarking on the same, @Crypto Patel, in his recent X (Formerly Twitter) post noted,
“Genesis Trading has taken a major step in their bankruptcy process by converting GBTC shares into 32,041 BTC (yes, you read that right!), valued at $2.1 billion over the past three weeks.”
This has resulted in the share price of GBTC experiencing significant volatility, with fluctuations tied to Bitcoin’s price movements.
Echoing similar sentiments, @Crypto Patel further added,
“And guess what? This all happened after Genesis agreed to give back around $2 billion to about 232,000 people who used Gemini Earn. Looks like $BTC is the way to go to the moon!”
In the wake of these developments, at the time of writing, Bitcoin was trading at $67,882.72 after appreciating by 1.28% in the last 24 hours.
Bitcoin halving hints at bullish outlook
As Bitcoin goes through a consolidation phase, uncertainty looms over its future trajectory. With Bitcoin’s fourth halving nearing, whales are accumulating BTC – A sign of bullish sentiment amid supply dynamics.
Seeing the recent surge in optimism surrounding BTC, QCP Capital, a reputable crypto-analysis firm, noted,
“Increasing BTC spot ETF inflows in the last few days (up to +$232m on Thu)”
The firm went on to observe that that substantial Bitcoin call buying, along with reduced leverage and a cautious trader stance, fosters market stability.
Despite these exchanges, however, Anthony Scaramucci anticipates a significant upside for Bitcoin ahead of the April halving event. In fact, he believes that Bitcoin could surge six to ten times post-halving as its impact isn’t fully priced. That being said, he did acknowledge that this surge may not happen immediately, but could unfold gradually over time.
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