Genius Group restarts Bitcoin treasury plan after court lifts legal hurdle

Genius Group, a Singapore-based education company, has cleared a legal obstacle that had blocked it from raising capital to rebuild its Bitcoin treasury. The U.S. Court of Appeals for the Second Circuit vacated a preliminary injunction that Genius said had restricted its ability to issue shares, raise capital, and buy Bitcoin.

The court order, dated Aug. 31, sends the dispute back to the Southern District of New York. Genius had previously sold all its Bitcoin holdings in April to repay $8.5 million of debt.

Key numbers in Genius Group's new plan

• Target Bitcoin treasury: $827 million.
• Target AI portfolio: $800 million.
• Total assets projected to reach $2 billion by fiscal 2031.
• Planned issuance of preferred securities: $1.2 billion.
• First raise: $12.5 million, about 1.5% of the Bitcoin target.
• Net assets as of June 30: $106.6 million, with no third-party debt.

What the court ruling says

The appeals court vacated the preliminary injunction that had limited Genius Group's fundraising and Bitcoin purchases. The case now returns to the lower court for further proceedings. The company said the injunction had constrained its share issuance and capital-raising ability.

Preferred share model inspired by Strategy

Genius plans to use preferred shares similar to those issued by Michael Saylor's Strategy, which uses Bitcoin-backed preferred securities like STRC. These securities have a market value exceeding $13 billion, according to the report.

Genius intends to issue $1.2 billion of these securities. Proceeds would be split among Bitcoin purchases, AI investments, and a cash reserve covering about 18 months of preferred dividends. CEO Roger James Hamilton said the structure is designed to expand both treasuries without issuing additional ordinary shares, with returns above the preferred dividend rate flowing through to net asset value for common shareholders.

Bitcoin rebuild, AI already underway

Genius first adopted its Bitcoin treasury strategy in 2024, building reserves to a peak of 440 BTC. But legal battles forced it to sell down its holdings, and it exited completely in April. The company now plans to restart Bitcoin purchases in the fourth quarter, but no new acquisition has been disclosed yet.

Its AI exposure is further along. Genius launched the AGI Infinity Portfolio in May and made its first investment in June, gaining indirect pre-IPO exposure to companies such as OpenAI, Anthropic, SpaceX, Anduril, and Databricks. It has also outlined an initial $100 million AI deployment across pre-IPO funds and listed infrastructure companies.

What remains unclear

The final size, pricing, and timing of the preferred financing are subject to market conditions and board approval. Whether investors will finance the plan at anything close to its $1.2 billion ambition remains unresolved.

Why this matters

Genius Group's move shows how a public company can use a preferred-share model to finance Bitcoin holdings without relying solely on common-stock issuance. The outcome will test whether the market supports such a capital plan after a company has sold its entire Bitcoin position and is starting over.

Sources

• CryptoSlate