Genius Group Unveils $33M Rights Offering to Supercharge Bitcoin Treasury Growth

• Genius Group’s $33M rights offering boosts its Bitcoin Treasury, signaling bold confidence in cryptocurrency-driven growth.
• CEO Roger Hamilton’s share purchase and full rights subscription showcase insider trust in Genius Group’s Bitcoin-focused strategy.
• Aiming for $86M in Bitcoin holdings, Genius Group balances bold crypto exposure with strategic loan-backed financial planning.

Genius Group has launched a $33 million rights offering to expand its Bitcoin Treasury. Shareholders will receive one right per ordinary share held on January 24, allowing them to buy additional shares at $0.50 each. The offering, which expires on February 14 comes at a substantial discount to the current share price, potentially attracting strong investor participation.

The company plans to allocate 100% of the net proceeds to purchasing Bitcoin, increasing its Bitcoin Treasury from $35 million to $86 million. Besides the offering, Genius Group seeks $20 million in Bitcoin-backed loan financing to bolster its strategy further.

CEO’s Commitment and Strategic Timing

Founder and CEO Roger Hamilton has committed to purchasing 500,000 shares on January 15, 2025. Moreover, he will fully subscribe to his rights under the offering. Post-acquisition, Hamilton will own 10.3% of the company, signaling strong insider confidence in this aggressive strategy.

The timing aligns with Bitcoin’s rising institutional adoption and recent ETF approvals. By focusing heavily on Bitcoin, Genius Group positions itself as a cryptocurrency-driven public company. This strategy mirrors MicroStrategy’s approach but with higher exposure due to Genius Group’s smaller market cap of $13 million.

Risks and Potential Upside

If successful, the $86 million Bitcoin Treasury would account for a portion of Genius Group’s assets. This heavy exposure could lead to substantial returns if Bitcoin appreciates. However, it also introduces volatility risks, potentially affecting short-term stock performance.

In addition, the company’s increasing use of Bitcoin-backed loans reflects a calculated approach to growth. Its loan-to-value ratio of 40% demonstrates a balanced financial strategy. The company has already achieved 30% of its $120 million Bitcoin Treasury target, with recent purchases averaging $94,047 per Bitcoin. Besides, Genius Group’s BTC/Price ratio of 83% emphasizes Bitcoin’s importance to its overall value.