Genius Group, an AI-powered education company, announced ambitious plans on Friday to substantially increase its Bitcoin holdings to $100 million through a combination of a rights offering and additional loans.
The company is offering existing shareholders the opportunity to purchase new ordinary shares at $0.50 per share, a discount from current market prices. Shareholders on record as of January 24, 2025, will receive one transferable right for each share owned, which can be used to buy one new ordinary share.
The rights offering, expected to raise up to $33 million if fully subscribed, will be complemented by planned loan financing of up to $22 million. This combined funding would allow Genius Group to expand its current Bitcoin treasury from approximately $45 million to $100 million.
Shareholders who exercise their basic subscription rights in full will have additional opportunities to subscribe for any remaining unsubscribed shares. However, those who sell their rights will lose this oversubscription privilege. The rights are currently trading on the NYSE American under "GNS RT" until February 13, 2025.
This move builds on Genius Group's November announcement to allocate 90% or more of its reserves to Bitcoin, targeting an initial goal of $120 million. The current expansion plan would achieve over 80% of this target if successful.
The company recently reported positive results from its Bitcoin strategy, with a 177% increase in net asset value after growing its Bitcoin treasury to $30 million. Despite these gains, Genius Group's stock opened at $0.46 on Friday, showing an 8% decline over the previous day's trading.
The company's bold Bitcoin treasury expansion represents a continued commitment to cryptocurrency as a core part of its financial strategy, even as it navigates market volatility in both crypto and traditional markets.