Genius Group restarts $827M Bitcoin plan via Strategy's STRC playbook

A US appeals court has cleared Genius Group to raise capital, freeing it to rebuild an $827 million Bitcoin treasury it dismantled under legal pressure.

"We believe Bitcoin and AI are entering new growth cycles," Roger James Hamilton, chief executive at Genius Group, said, adding that the company intends to use permanent capital to expand exposure to both.

The Aug. 31 order from the US Court of Appeals for the Second Circuit removes the injunction as applied to the Singapore-based education group and sends the dispute back to the Southern District of New York. Genius plans to issue $1.2 billion of preferred securities, with proceeds split among Bitcoin purchases, AI investments and a cash reserve covering roughly 18 months of preferred dividends. The first raise of $12.5 million equals about 1.51 percent of the $827 million Bitcoin target before any allocation to AI or the reserve.

Whether investors finance the plan at anything close to its $1.2 billion ambition remains unresolved. Genius reported $106.6 million in net assets and no third-party debt as of June 30, with the final size, pricing and timing of the preferred financing subject to market conditions and board approval. The company plans to restart Bitcoin purchases in the fourth quarter.

Bitcoin rebuild starts from zero while the AI book is already live

Genius first adopted its Bitcoin treasury strategy in 2024, directing most of its reserves into the asset and building to a peak of 440 BTC. That strategy reversed as legal battles constrained fundraising and share issuance, and the company sold down its holdings, exiting the remainder in April and using the proceeds to repay $8.5 million of debt.

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

The STRC template matters beyond Genius. Strategy's Bitcoin-backed preferred securities now carry a market value above $13 billion, giving other listed companies a model for funding long-duration assets while limiting dilution to ordinary shareholders. 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 traded at $81,176, up 4.45 percent in 24 hours, as of the latest data. Whether Genius's first raise clears and subsequent tranches follow will test whether the corporate treasury playbook spreads beyond its originator.

This article is for informational purposes only and does not constitute investment advice.