Key Points
- Genius Group Limited has increased its Bitcoin holdings to 319.4 BTC, valued at $30 million.
- The company’s Bitcoin-first strategy has resulted in a BTC yield of 1,649% from November to December 2024.
Genius Group Limited, an AI and Bitcoin-oriented education company, recently expanded its corporate treasury by acquiring an additional $10 million worth of Bitcoin.
This purchase increased the company’s total Bitcoin holdings to 319.4 BTC, currently valued at $30 million. This acquisition was made within six weeks of implementing its Bitcoin-first strategy, illustrating the company’s innovative approach to incorporating digital currency into education and technology.
Embracing a Bitcoin-First Strategy
The Bitcoin-first strategy was announced by Genius Group on November 12, 2024, with the goal of allocating 90% or more of its reserves to Bitcoin and accumulating $120 million in Bitcoin.
The company has already achieved 25% of this goal, setting a new benchmark for corporate Bitcoin adoption. This strategy is a reflection of Genius Group’s vision to incorporate Bitcoin into its financial operations, providing stability and growth for its stakeholders.
Genius Group introduced a BTC yield metric as a Key Performance Indicator (KPI) to evaluate the effectiveness of its Bitcoin acquisitions. Impressively, the company achieved a BTC yield of 1,649% from November to December 2024, indicating the success of its strategy.
Roger Hamilton, CEO of Genius Group, expressed satisfaction with the progress. He noted that the company has consistently bought Bitcoin and is ahead of schedule to reach the goal of 1,000 BTC.
With BTC yield as a key metric, the company is exploring ways to maximize shareholder value and grow its treasury. This metric has also been adopted by other companies, such as MicroStrategy and Semler Scientific, to measure their Bitcoin acquisition efforts.
However, Genius Group acknowledges the limitations of the BTC yield metric, as it does not account for liabilities or operational income and should be considered a supplementary tool. The company’s share value may not always reflect its Bitcoin holdings due to market conditions and sentiment.
Genius Group’s Bitcoin Holdings Indicate Undervalued Stock
Genius Group has utilized various financial tools to fund its Bitcoin purchases, including an at-the-market (ATM) equity program and a $10 million Bitcoin-backed loan from Arch Lending. These strategic decisions have allowed Genius Group to optimize its treasury without overextending its balance sheet.
By the end of 2024, the company’s Bitcoin holdings, valued at $30.4 million, represented 75% of its total market capitalization of $40.6 million. This high ratio of Bitcoin to stock price suggests that the company’s stock is undervalued and indicates a potential for market correction.
Despite a 177% increase in net asset value to $54.6 million in the first half of 2024, Genius Group’s market cap remains undervalued. CFO Gaurav Dama pointed out that the company’s 75% BTC/Price ratio is much higher than its industry peers, indicating that the value of its Bitcoin holdings is not fully reflected in the share price.
In 2025, Genius Group plans to report Bitcoin Treasury performance alongside its financials more frequently to improve transparency and provide investors with a clearer view of its financial health and strategy.