Genius Group Limited, a company focused on AI-driven education and business acceleration, has unveiled a significant shift in its financial strategy by designating Bitcoin as its primary treasury reserve asset. This strategic move aligns the company with other Bitcoin-focused firms like MicroStrategy, as it plans to allocate a substantial portion of its reserves to the world’s leading cryptocurrency.
Committing to a “Bitcoin-First” Approach
In an announcement dated November 12, Genius Group revealed its commitment to a “Bitcoin-first” strategy, where it intends to allocate at least 90% of its existing and future reserves to Bitcoin. Leveraging its $150 million at-the-market (ATM) fundraising capability, the company plans to make an initial investment of $120 million into Bitcoin, which, at current prices, equates to about 1,380 BTC.
The company expressed its confidence in this approach, noting, “By adopting a Bitcoin-first strategy, we aim to be among the first companies listed on the NYSE American to fully embrace MicroStrategy’s Bitcoin model, which we believe will benefit our shareholders.”
Leadership Restructuring to Support Blockchain Focus
This Bitcoin-focused strategy follows a recent overhaul of Genius Group’s Board of Directors, incorporating blockchain and Web3 experts to guide the company in this new direction. The addition of these experts is set to support the company’s foray into the cryptocurrency and decentralized technology sectors.
Tackling Market Manipulation with Blockchain Transparency
Genius Group’s decision to pivot towards Bitcoin comes after a challenging phase where its share price plummeted below $0.60 due to alleged market manipulation. CEO Roger Hamilton highlighted ongoing litigation efforts against the alleged manipulators, which he believes could lead to compensation exceeding $250 million.
Hamilton also emphasized that adopting decentralized blockchain technology could help better align the company’s stock value with its actual assets. In 2023, Genius Group reported having $43 million in total assets and generating $23 million in revenue.
Positive Market Response and Share Price Jump
The market reacted positively to Genius Group’s announcement. Shares of the Singapore-headquartered company saw a sharp increase of up to 50% in premarket trading following the news. Although some of these gains were moderated later in the day, data from Google Finance indicates that the stock is still up by over 61% in the last five days, currently trading at $0.95 per share.
Expanding Crypto Initiatives
Beyond holding Bitcoin as a reserve asset, Genius Group plans to integrate Bitcoin payments into its global EdTech platform. The company also announced the launch of a new educational program called “Web3 Wealth Renaissance”, which aims to educate students on Bitcoin, blockchain, and cryptocurrencies using AI-powered learning tools.
Hamilton highlighted that as an AI-driven educational platform, Genius Group is uniquely positioned to lead the way in educating students and investors on the future of decentralized finance and digital currencies.
Following the Footsteps of MicroStrategy
By adopting Bitcoin as a primary treasury reserve, Genius Group joins a growing list of publicly traded companies that have embraced Bitcoin to protect against economic volatility. MicroStrategy, which pioneered this strategy in 2020, currently holds 279,420 BTC.
Other firms, such as Semler Scientific and Tokyo-based Metaplanet, have also adopted Bitcoin as a key part of their treasury strategy, with each holding over 1,000 BTC. This trend highlights the increasing appeal of Bitcoin as a robust reserve asset for companies seeking diversification.
Future Outlook
Genius Group’s new Bitcoin-focused reserve strategy marks a significant milestone as traditional companies increasingly turn to digital assets to safeguard and enhance shareholder value. By leveraging blockchain technology and embracing decentralized financial solutions, Genius Group is positioning itself to lead in the intersection of AI, education, and cryptocurrency.
With plans to deepen its involvement in the crypto space, the company is poised to set a precedent for others exploring the benefits of digital assets as part of their treasury management. This forward-looking strategy not only aligns Genius Group with emerging financial trends but also positions it to capitalize on the evolving landscape of decentralized finance.
