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In summary
- Genius Group planned to acquire $120 million worth of Bitcoin to use as a treasury reserve, taking inspiration from MicroStrategy.
- Genius Group shares rose 79% following the announcement, reaching a high of $1.41.
- The company aims for Bitcoin to represent 90% of its reserves, in line with its new corporate strategy.
Artificial intelligence firm Genius Group has announced that it will refill its coffers with Bitcoin, unveiling a MicroStrategy-inspired treasury reserve strategy shortly after the digital asset’s price hit another new all-time high.
The company plans to purchase $120 million worth of Bitcoin as part of its latest business plan, holding the token as a long-term reserve asset. Ultimately, Genius Group aims for Bitcoin to account for 90% of its treasury reserves.
“We see Bitcoin as the primary store of value that will drive…exponential technologies,” Thomas Power, Director of Genius Group, said in a statement.
The company’s stock soared on Tuesday following the news, rising 79% at the time of writing to a current price of $1.13, according to data from Google Finance. Briefly, it hit a daily high of $1.41 earlier on Tuesday. Genius (GNS) stock, listed on NYSE American, is still down 82% for the year.
The Genius Group’s shift in corporate strategy comes amid a Cryptocurrency market rally triggered by former President Donald Trump’s re-election last week.
Bitcoin soared to $89,864 on Monday, according to data from CoinGeckodata, marking the latest price spike over the past week since the asset broke its previous record of $73,737 on Election Day. Meanwhile, some analysts predict that the cryptocurrency’s price will rise even further before the end of the year, surpassing a price target of $100,000.
Genius Group’s adoption of this new policy follows the recent restructuring of its board of directors to include experts in Blockchain and Web3 technologies.
The company is modeling its new Bitcoin-based corporate strategy after that of MicroStrategy, a software company that began amassing a large stash of the cryptocurrency in 2020. The company now owns nearly $25 billion in Bitcoin, and has seen the price of Its shares soared throughout the year, reaching a new all-time high on Monday.
And MicroStrategy is still buying after revealing its latest purchase on Monday. The company led by Michael Saylor announced at the end of October that it plans to raise $42 billion over the next three years to accumulate even more Bitcoin in its treasury.
MicroStrategy and Genius Group are not the only organizations that have adopted Bitcoin as a reserve asset. Other notable companies that also hold Bitcoin in their treasuries are Metaplanet and Semler Scientific.
And they could have a big-money buyer in the form of the US government. During the Bitcoin 2024 event in July, Trump announced a plan to create a BTC reserve for the US Treasury, and Sen. Lummis introduced a bill on the issue later that day. The bill calls on the government to accumulate more than 1 million BTC and hold it for at least 20 years.
Edited by Andrew Hayward
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