Key facts
- Genius Group plans to establish AI and bitcoin treasuries with a combined target of $1.6 billion.
- The company aims for total assets to reach $2 billion by fiscal year 2031.
- Genius Group sold all its bitcoin holdings in April to pay off $8.5 million in debt.
- The company will fund the new treasuries through a preferred stock offering, starting with $12.5 million.
- Proceeds will be split between the AI treasury, bitcoin treasury, and dividend reserves.
Genius Group has announced plans to rebuild its bitcoin treasury, just months after liquidating its entire holdings. The company aims to establish parallel AI and bitcoin treasuries, targeting a combined value of $1.6 billion and total company assets of $2 billion by fiscal year 2031. This strategic shift follows the company's sale of all its bitcoin reserves in April to repay $8.5 million in debt, a move necessitated by a drop in crypto prices and a court order that blocked fundraising efforts.
CEO Roger James Hamilton stated that capital deployed into the bitcoin and AI Treasury will directly benefit ordinary shareholders. Genius Group initially adopted a 'Bitcoin first' strategy in late 2024, accumulating 440 BTC by February 2025. However, legal challenges forced a series of sales, reducing its holdings significantly. The company has now sold its remaining bitcoin, reportedly at a loss, to eliminate debt and currently holds no crypto reserves.
To fund the new treasuries, Genius Group plans to issue Perpetual Preferred Securities under its $1.2 billion SEC-cleared shelf registration, targeting an initial raise of $12.5 million. These proceeds will be allocated to the AI treasury, the bitcoin treasury, and a cash reserve to cover approximately 18 months of dividend payments. This approach mirrors that of Strategy, the largest corporate bitcoin holder, and Strive Asset Management, which have successfully raised substantial funds through similar perpetual preferred stock offerings.