Key Points:
- Genius Group’s Bold Move: The education tech company converts 90% of its funds to Bitcoin, raising its holdings by 50%.
- Corporate Bitcoin Trend: A growing number of companies adopt Bitcoin as a hedge against inflation and a progressive asset.
- Global Impact: Over 1 million BTC are now held in corporate treasuries worldwide.
Genius Group Makes Headlines with $10 Million Bitcoin Purchase
On December 30, 2024, Singapore-based Genius Group Ltd., an AI-powered education company with over 5.4 million students worldwide, announced a groundbreaking move. The company invested $10 million in Bitcoin, increasing its holdings to 319.4 BTC. This bold step raised its Bitcoin reserves by 50%, with the company aiming to hold 90% of its funds in Bitcoin.
Impact on Genius Group
- Stock Surge: Following the announcement, Genius Group’s stock price jumped by 11%.
- Strategic Shift: The company implemented a Bitcoin Treasury Key Performance Indicator (KPI) to measure its market cap against Bitcoin reserves.
- Future Plans: CEO Roger Hamilton emphasized the company’s commitment to maximizing shareholder value and preparing for a decentralized future.
“We believe a Bitcoin-first strategy bridges the gap between traditional and decentralized economies,” said Genius Group in a statement.
The Rise of Corporate Bitcoin Reserves
Genius Group is not alone in its Bitcoin adoption. Over one million BTC are held by private and public companies globally, with notable examples such as MicroStrategy, Tesla, and Galaxy Digital Holdings leading the way.
Top Companies in Bitcoin Holdings:
- MicroStrategy: Holds nearly 450,000 BTC, accounting for over 2.1% of the total Bitcoin supply.
- Marathon Digital Holdings: Over 26,000 BTC.
- Private Firms: Block.one leads with 164,000 BTC, followed by Tether Holdings with 83,000 BTC.
Why Are Companies Turning to Bitcoin?
Benefits of Bitcoin Reserves:
- Hedge Against Inflation: Bitcoin offers protection against the devaluation of fiat currencies.
- Market Perception: Enhances the company’s image as forward-thinking and progressive.
- Bull Market Gains: Provides a quick budget boost during Bitcoin’s upward trends.
Challenges:
Not all companies are on board. For instance, Microsoft shareholders recently rejected a proposal to add Bitcoin to the company’s balance sheets. Critics argue that Bitcoin’s volatility may deter traditional investors.
The Bigger Picture
The shift towards Bitcoin as a treasury asset highlights its growing acceptance in the corporate world. While some companies, like Genius Group, embrace the “Bitcoin Standard,” others remain cautious. As the cryptocurrency market evolves, the debate over the role of Bitcoin in corporate finance is far from over.
