1.65 billion dollars in Bitcoin will be sold by this crypto company

Genesis Global has received the green light from bankruptcy court to sell approximately 36 million shares of Grayscale Bitcoin Trust (GBTC), valued at more than $1.65 billion.

The move is part of the bankrupt crypto lender's overall strategy to repay customers who have lent digital assets.

Genesis Grayscale Bitcoin Trust to sell shares

The approval by Judge Sean Lane paves the way for Genesis to convert these shares into Bitcoin or cash. He still needs to use the services of brokers to gradually streamline the process. In addition, Genesis plans to liquidate Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) shares. These holdings are collectively worth more than $230 million.

Sean O'Neill, representing Genesis, stated that the current value of GBTC shares is approximately $1.65 billion. The move to redeem and sell these shares has received mixed reviews.

Genesis parent company Digital Currency Group (DCG) sought to postpone the redemptions. The company argued that such actions may be premature. Basically, it could be harmful if the court later rejects Genesis' debt settlement request. DCG's fears extend to a quick divestment of shares on fears that it could depress prices and hurt potential recovery efforts for creditors.

Despite these concerns, Judge Lane upheld Genesis' autonomy over Genesis 11 proceedings to determine the best way to liquidate assets. The Genesis Lenders sponsored asset sale strategy aims to reduce market impact by strategically coordinating sales through a broker.

“Debtors are permitted, but not required, to purchase, sell or transfer trust assets (or proceeds) in accordance with their reasonable business judgment as directed,” the court filing reads.

This development has wider implications for the cryptocurrency market, particularly the market value of Bitcoin. For example, technical analyst John Gregory suggested that the recent sell-off could put downward pressure on BTC. It is currently facing resistance between $52,000 and $54,000. He suggested that the consolidation phase for Bitcoin could provide a window for altcoins to gain momentum.

“$52,000 to $54,000 has some weekly and monthly resistance. [I] I would like to see BTC stop around here [and] Strengthening, perhaps giving [altcoins] Some classes party harder,” said Gregory.

Read more: Bitcoin price prediction for 2024/2025/2030

The outcome of the sale of Genesis GBTC shares may signal significant changes in the cryptocurrency market for investors and stakeholders.