Genius Group, a public company focused on AI-powered educational offerings, announced in a press release today that it will now focus on Bitcoin.
Genius Group [...] today announced that its Board has adopted a global “Bitcoin-first” strategy with Bitcoin to be the primary treasury reserve asset.
From the press release
Specifically, the company, which is listed on the New York Stock Exchange (NYSE), wants to hold at least 90 percent of its corporate reserves in Bitcoin and accept BTC as a payment method for its education platform, which will also feature content on BTC and Co. in the future.
In addition, the Singapore-based company plans to issue new shares for 150 million US dollars and use 120 million US dollars of this to acquire Bitcoin. According to Ian Putter, Managing Director of the Genius Group, this should create additional value for shareholders.
Genius Group has an approved $150 million ATM funding facility, and the Board intends to put our future earnings and capital raising to good use in building a sizeable reserve in Bitcoin, to strengthen our balance sheet and shareholder returns.
Ian Putter in the press release
Thomas Power, another director, also refers to MicroStrategy, the first public company to invest in Bitcoin, as part of the announcement.
The compelling case that we believe Michael Saylor and Microstrategy have made for public companies to invest in Bitcoin as their primary treasury reserve asset is one that we fully endorse.
Thomas Power in the press release
As Genius Group is headquartered in Singapore, there is no capital gains tax on Bitcoin investments. The small public company cites this as an advantage in the context of the BTC strategy.
Being a Singapore-incorporated company, with 0% capital gains tax, gives us an additional advantage in our Bitcoin-first strategy.
Ian Putter in the press release
However, the company currently only has a market capitalization of just over USD 10 million - even though the share price reacted positively to the press release. Issuing new shares amounting to 15 times the company's value is likely to prove quite difficult.
More and more stock corporations are turning to Bitcoin
In the meantime, there are already a large number of stock corporations that have followed MicroStrategy's example and invested in Bitcoin. The car manufacturer Tesla and the payment service provider Block bought their first Bitcoin several years ago.
This year, two small companies followed suit, including the Japanese stock corporation Metaplanet and the healthcare company Semler Scientific, which have already managed to accumulate more than 1,000 Bitcoin.
Only time will tell whether the Genius Group will also manage to build up a substantial Bitcoin holding. With the great success of the companies already pursuing a Bitcoin strategy, it can only be assumed that others will follow suit.
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