Genius Group is making a big move and if it pays off, shareholders get cash, and the company walks away with a mountain of Bitcoin.
Intrigued?
The AI-powered education company is chasing over $1 billion in damages through two lawsuits. If the cases succeed, half the winnings will go to shareholders as a special dividend, and the other half will be used to buy Bitcoin. It’s an unusual but strategic move.
In a press release on Thursday, Genius Group’s board approved a plan to split any future legal wins. CEO Roger Hamilton says the company will distribute 50% of net damages to shareholders and use the rest to grow its Bitcoin treasury.
According to the company, a successful outcome in both lawsuits could result in a $7 per share dividend and an acquisition of 5,000 BTC at today’s prices.
That Bitcoin haul, worth over $535 million at current prices, would mark one of the most aggressive BTC buys by a public company in recent memory.
The first lawsuit has already been filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) and targets several individuals, including former SEC Chairman John Clayton. Genius is seeking more than $750 million in damages.
The second lawsuit, still being finalized, focuses on naked short selling and spoofing. Based on 2023 data, the company expects at least $262 million in damages but that number is likely to grow with updated trading records from 2024 and 2025.
Hamilton emphasized that these lawsuits are meant to recover losses directly caused to shareholders.
Genius Group has already started building a Bitcoin treasury. Earlier this month, it boosted its BTC holdings by over 50% and said it’s aiming to accumulate 1,000 BTC. But if the legal strategy pays off, the company could fast-track that goal.
“There’s no guarantee how much we recover,” Hamilton admitted.
Still, he floated a best-case scenario where justice wins, and Bitcoin climbs.
“Wouldn’t that be the ultimate irony,” he added, “where victims end up making 100x what the crooks stole from them because we fought back.”
There’s no timeline yet for how long the lawsuits will take or how much might be recovered. Any payouts will depend on final damages, legal fees, taxes, and regulatory approvals in both the U.S. and Singapore.
But the message is clear: Genius Group is betting that legal wins can fund both shareholder rewards and long-term Bitcoin growth! Let’s see if they’re right.
Allocating substantial funds to Bitcoin carries significant volatility risk, as its price can fluctuate dramatically. There are also risks related to secure custody, regulatory changes, and potential liquidity issues if a large amount needs to be quickly converted.
Yes, the lawsuits could boost investor confidence if successful, potentially increasing the stock price. However, the inherent volatility of Bitcoin, a key part of their strategy, could also introduce price swings, while legal uncertainty itself can weigh on the stock.
While many public companies (like MicroStrategy) have adopted Bitcoin treasury strategies, Genius Group’s explicit plan to fund a substantial Bitcoin acquisition directly from legal damage awards appears to be a unique and aggressive approach.
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