Genius Group Acquires Additional $10 Million in Bitcoin, Reaches $30 Million Total
Genius Group Limited (NYSE: GNS), an AI-powered and Bitcoin-first education company, has recently increased its corporate treasury by purchasing an additional $10 million worth of Bitcoin. This acquisition raises its total Bitcoin holdings to 319.4 BTC, valued at $30 million, achieved within six weeks of launching its Bitcoin-first strategy.
Genius Group’s Bold Bitcoin-First Strategy
Genius Group announced its Bitcoin-first strategy on November 12, 2024, aiming to allocate 90% or more of its reserves to Bitcoin with a target of accumulating $120 million in Bitcoin. The company has reached 25% of this goal ahead of schedule, establishing a new standard for corporate Bitcoin adoption. This strategy aims to integrate Bitcoin into its financial operations, providing stability and growth for stakeholders.
The introduction of a BTC yield metric serves as a Key Performance Indicator (KPI) to assess the effectiveness of its Bitcoin acquisitions. Genius Group reported a BTC Yield of 1,649% from November to December 2024, indicating the strategy's success. CEO Roger Hamilton noted that the company is on track to achieve its goal of 1,000 BTC.
With BTC Yield as a key metric, the company plans to explore methods to maximize shareholder value and expand its treasury. Other companies, such as MicroStrategy and Semler Scientific, also utilize this metric for evaluating their Bitcoin acquisition efforts. However, Genius Group acknowledges the limitations of BTC Yield, as it does not account for liabilities or operational income.
The company's share value may not consistently reflect its Bitcoin holdings due to market conditions and sentiment.
Genius Group's Bitcoin Holdings Signal Undervalued Stock
Genius Group has employed various financial tools to fund its Bitcoin purchases, including an at-the-market (ATM) equity program and a $10 million Bitcoin-backed loan from Arch Lending. These strategies have enabled the company to optimize its treasury without straining its balance sheet.
As of the end of 2024, the company's Bitcoin holdings, valued at $30.4 million, constitute 75% of its total market capitalization of $40.6 million. This high ratio suggests that the company's stock is undervalued and indicates potential for market correction. Despite a 177% increase in net asset value to $54.6 million in the first half of 2024, Genius Group's market cap remains undervalued. CFO Gaurav Dama highlighted that the company's 75% BTC/Price ratio significantly exceeds industry peers, suggesting that the value of its Bitcoin holdings is not fully reflected in the share price.
In 2025, Genius Group plans to report Bitcoin Treasury performance alongside its financials more frequently to enhance transparency and provide investors with a clearer view of its financial health and strategy.