Singapore-based company Genius Group faces temporary restrictions on expanding its Bitcoin treasury after a U.S. court ruling.
Court Restrictions and Their Consequences
Genius Group was issued a preliminary injunction by a New York District Court on March 13, which restricts the company from selling shares, raising funds, and using investor capital to acquire more Bitcoin. These measures were enforced amidst an ongoing legal battle regarding the company's merger with Fatbrain AI.
Financial Challenges and Diversification
As a result of the court's restrictions, Genius Group had to shut down several divisions, halt marketing efforts, and liquidate part of its Bitcoin reserves. To sustain operations, the company sold 10 Bitcoins from its 440-Bitcoin reserve, valued at over $23 million at current prices.
Company's Future Under Restrictions
Despite the restrictions, the company reaffirms its commitment to Bitcoin, stating it will 'continue to fly the flag' for the cryptocurrency. Genius Group entered the Bitcoin market in November 2024, aiming to hold 90% or more of its reserves in Bitcoin.
Thus, the current legal restrictions on Genius Group present a significant challenge to the company's growth and its Bitcoin holding strategy.
