Genesis, a struggling crypto lending company, reportedly purchased $2.1 billion worth of Bitcoin after selling 36 million shares of the Grayscale Bitcoin Trust (GBTC). Court documents revealed that Genesis sold its GBTC shares and used the proceeds to acquire 32,041 Bitcoins to repay creditors.

The New York bankruptcy court approved the sale of GBTC shares alongside shares from Grayscale Ethereum and Grayscale Ethereum Classic Trust. The initial value of the GBTC shares was nearly $1.4 billion, and the Ethereum and Ethereum Classic Trust shares were valued at $165 million and $38 million, respectively.

Due to the recent surge in Bitcoin prices, the value of the coins purchased from the GBTC shares is now close to $2.2 billion. These purchased coins will be distributed to Genesis's Gemini Earn creditors as part of its repayment plan, which has faced opposition from its parent company, the Digital Currency Group.

Genesis's financial troubles stem from the fallout of the FTX bankruptcy in late 2022 and led to the reduction of its workforce and exploration of strategic alternatives. Despite settling a lawsuit with the New York Attorney General related to its Earn program, Genesis's bankruptcy filing raised concerns about the stability of the Grayscale Bitcoin Trust and potential liquidation of over 600,000 Bitcoins linked to the company.