Key Points
- Genius Group, an AI-powered education company, has approved a $33 million rights offering to increase its Bitcoin Treasury.
- The company plans to distribute 90% of its reserves to Bitcoin, aiming for a total Treasury value of $120 million.
Genius Group, an educational firm with a focus on Bitcoin and utilizing artificial intelligence, has given the green light for a substantial $33 million rights offering. The capital raised from this offering will be used to strengthen the company’s Bitcoin Treasury.
Over the recent past, Genius has declared its intention to allocate 90% of its reserves to Bitcoin. The company’s goal is to achieve a total Treasury value of $120 million. In the past two months, Genius has successfully acquired 372 Bitcoin at an average cost of $94,047.
Market Volatility and Bitcoin
Bitcoin’s recent price fluctuations, dropping to $89,000 before climbing to $97,000, have left many investors puzzled. Despite this, it’s evident that institutions worldwide are optimistic about the leading digital currency in the long run. The $33 million rights offering from Genius Group serves as evidence of this sentiment.
Details of the Rights Offering
The Board at Genius has given the go-ahead for the $33 million rights offering—a decision that could potentially elevate the company’s Bitcoin reserves from $35 million to an impressive $86 million. However, the final amount is subject to change due to the subscription level of the offering.
Every shareholder of Genius as of January 24th will receive one right for each share of the education platform they hold. These rights can be transferred, with each right enabling its owner to subscribe to one ordinary share at $0.50. Shareholders also have the option to apply for additional shares if others choose not to exercise their rights.
The rights will commence trading on the NYSE under the symbol “GNS RTWI” on a when-issued basis from January 23rd. Regular trading under “GNS RT” will start on January 27th and continue until February 13. The rights offering is scheduled to expire at 4:30 p.m. ET on February 14.
Roger Hamilton, the CEO and founder of Genius Group, has confirmed his participation in the rights offering. Hamilton plans to purchase a significant 6.8 million shares by exercising his rights, which will increase his stake in the company to 10.3%.
On Monday, Bitcoin fell below the $90,000 price level for the first time, but it has since rebounded, reaching a daily high of $97,352.66 on Tuesday. According to data from CoinMarketCap, Bitcoin is 11.01% down from its all-time high of $108K. This is considered a normal market correction according to Fundstrat’s Tom Lee.
At the time this article was written, Bitcoin was trading at $96,468.67, up 5.20% in the past 24 hours, and had a market cap of $1.91 trillion, once again nearing the $2 trillion valuation.
The Relative Strength Index (RSI) for Bitcoin on the weekly chart above shows that Bitcoin is extremely bullish on a larger time frame. The RSI reads a value of 64.97, indicating that the selling pressure is extremely high as investors continue to hold their Bitcoin coins.
