AI firm Genius Group has announced it will top up its coffers with Bitcoin, revealing a MicroStrategy-inspired treasury reserve strategy shortly after the digital asset’s price soared to another new all-time high.
The company plans to purchase $120 million in Bitcoin as part of its latest business plan, holding the token as a long-term reserve asset. Ultimately, Genius Group aims for Bitcoin to make up 90% of its treasury reserves.
“We see Bitcoin as being the primary store of value that will power… exponential technologies,” Genius Group Director Thomas Power said Tuesday in a statement.
The firm’s stock price skyrocketed Tuesday following the news, jumping by 79% as of this writing to a current price of $1.13, per data from Google Finance. It briefly touched a daily high of $1.41 earlier Tuesday. Genius (GNS) stock, listed on NYSE American, remains down 82% on the year.
Genius Group’s corporate strategy shift comes amid a crypto market surge triggered by former President Donald Trump’s re-election last week.
Bitcoin soared to $89,864 on Monday, CoinGecko data shows, marking the latest peak price over the past week since the asset broke its earlier record of $73,737 on Election Day. Meanwhile, some analysts predict the cryptocurrency’s price will edge even higher before the year’s end, blowing past a $100,000 price target.
Genius Group’s adoption of this new policy follows the recent restructuring of its board to include experts in blockchain and Web3 technologies.
The company is modeling its new Bitcoin-based corporate strategy after that of MicroStrategy, a software firm that began amassing a massive stockpile of the cryptocurrency in 2020. The firm now holds nearly $25 billion worth of Bitcoin, and has seen its stock price skyrocket over the course of the year, hitting a new all-time high price on Monday.
And MicroStrategy is still buying after revealing its latest purchase Monday. The Michael Saylor-led company announced in late October that it plans to raise $42 billion over the next three years to amass even more Bitcoin for its treasury.
MicroStrategy and Genius Group are far from the only two organizations buying up Bitcoin to hold as a reserve asset, however, with other firms including Metaplanet and Semler Scientific.
And they could have a fellow big-money buyer in the form of the United States government. At Bitcoin 2024 in July, Trump announced a plan to create a BTC stockpile for the U.S. Treasury, and Sen. Lummis unveiled a bill on the matter later that same day. The bill calls for the government to amass upwards of 1 million BTC and hold it for at least 20 years.
Edited by Andrew Hayward
Generally Intelligent Newsletter
A weekly AI journey narrated by Gen, a generative AI model.
Source link
Liz Napolitano
https://decrypt.co/291335/genius-stock-pumps-microstrategy-bitcoin-treasury
2024-11-12 20:12:23
