The company AI Genius Group chooses Bitcoin as a treasury asset: the stock explodes by 66% in one day

1 month ago 25

Genius Group, a leading company in the acceleration of AI solutions, revealed yesterday its $150 million ATM financing plan to purchase Bitcoin.

The crypto asset will become an essential part of the company’s treasury, which is now aiming for a “bitcoin-first” strategy in line with other fintech giants.

The GNS stock of Genius Group experienced a 66% pump immediately after the news was released, reflecting the strong interest of investors towards the cryptocurrency.

Let’s see everything in detail below.

The company AI Genius Group adopts Bitcoin as a strategic asset: purchases of 120 million dollars expected

Genius Group, educational company from Singapore focused on AI, decided yesterday to make Bitcoin its strategic asset as the primary source of the treasury.

Following the resolution of the board of directors, the group has formalized the plan to acquire cryptocurrency in a press conference.

The decision comes after an internal restructuring of the team, where new faces with previous experience in the crypto and web3 field have arrived.

Initially, the AI company will purchase Bitcoin worth 120 million dollars, approximately 1,380 BTC at current prices, to hold with a long-term perspective.

The money will come from an ATM (At-The-Market) financing of 150 million dollars with Genius Group committing to sell its stock to raise capital.

The remaining 30 million of their offer will likely be used to improve their operations in the field of artificial intelligence.

In total, 90% of current and future reserves will be committed to accumulating Bitcoin.

It is not over yet: Genius Group intends to use the proceeds in Bitcoin to open the doors to cryptographic payments through the Edtech platform.

Furthermore, the launch of a web3 educational program is planned to enable students to improve their understanding of the Bitcoin phenomenon.

The course will obviously be enhanced thanks to the presence of AI-based guides.

Thomas Power, director of Genius Group, believes in the properties of digital currency and is forward-thinking about the future of the crypto industry:

“We believe with our first Bitcoin strategy, we will be among the first American companies listed on the NYSE to fully embrace Microstrategy’s Bitcoin strategy, to the benefit of our shareholders.”

Ian Putter, an executive of the company, also expressed his enthusiasm for the news, highlighting the favorable fiscal outlook of Singapore:

“Being a company incorporated in Singapore, with a 0% capital gains tax, gives us an additional advantage in our Bitcoin-first strategy.”

The AI stock of Genius Group rises by 66% in one day

Immediately after the release of the new Bitcoin acquisition strategy, the stock of the AI Genius Group company recorded an increase of 66% in just one day.

The prices of the GNS stock, listed on the NYSE Arca exchange, went from 0.70 dollars to a high of 1.50 dollars, then closed the day at 1.05 dollars.

The trading volumes were over 100 times greater than those of the previous days, having attracted several traders interested in the Bitcoin factor.

Investors have brought the stock back into the spotlight given the positive momentum of the cryptocurrency, which a few days ago reached a new ATH.

Shareholders are expected to be rewarded in the future with high dividends, given the new profit opportunities emerging from the crypto market.

At the moment, the pre-market quotes of the stock estimate a further bull jump at the opening of the markets, with the value expected to rise up to 1.26 dollars.

In any case, we point out that the stock of the AI company has been in a continuous downtrend since its listing in April 2022.

Setting aside a highly speculative phase in Q1 2023, the GNS stock was characterized by constant selling pressure.

From the all-time high, it loses over 99% of its value, reflecting a lack of solidity in the company.

In this regard, Roger Hamilton, CEO of Genius Group, explained in a press conference that their stock was a victim of market manipulations:

“Genius Group has been in a public battle for two years against market manipulators, in which it saw its stock price drop to less than $0.60 and its market capitalization fall to $12 million, despite reporting audited annual revenues in 2023 of $23 million and total assets of $43 million.”

The damages induced to Genius Group by the counterparty Wes Christian are estimated at 250 million dollars. It is possible that the AI company’s stock could explode in a bull market if it wins the legal dispute in court.

Everyone Crazy for Bitcoin: Microstrategy, Mining Companies, and the USA Government

The decision of the AI Genius Group to dive into the Bitcoin market is inspired by the moves of other fintech companies listed on the stock exchange.

The same director of the group stated that he took inspiration from what Michael Saylor has done in recent years with his software company Microstrategy.

The entrepreneur has been accumulating Bitcoin continuously since September 2020, and now holds assets worth approximately 24.54 billion dollars thanks to the cryptocurrency.

The latest purchase dates back just to November 10, with a buy of 2.03 billion dollars.

Overall, MicroStrategy owns 279,420 BTC, purchased at a carrying price of 42,800 dollars for a PNL of 12.5 billion dollars.

Outside of Saylor, other companies have also recently chosen to adopt a “bitcoin-first” strategy and to add the currency to their reserves.

In May, the medical device manufacturer Semler Scientific planned to buy at least 1,000 Bitcoin.

A month later the Japanese company Metaplanet, did the same by announcing that it had acquired just over 1,000 Bitcoin.

In August, Marathon Digital, a leading company in the mining sector, completed an offering of senior convertible bonds to purchase 300 million dollars in Bitcoin.

Now even the government of the United States might decide to clean house and remove a large part of the currency supply from the market.

Under the leadership of the new president Donald Trump, the USA is considering purchasing Bitcoin at a rate of 200,000 coins per year for 5 consecutive years.

This translates into a total expenditure of 1,000,000 BTC, with a market value of 88 billion dollars according to current quotations.