Key Points
- Genius Group Ltd purchased $10 million worth of Bitcoin and plans to convert 90% of its funds to BTC.
- More companies globally are choosing Bitcoin as a primary asset in their corporate treasury.
On the last day of 2024, education technology firm, Genius Group Ltd, invested $10 million in Bitcoin. The company’s plan is to transform 90% of its funds into Bitcoin. Recently, an increasing number of global businesses have selected Bitcoin as the main asset in their corporate treasury.
Genius Group’s Bitcoin Reserve
Many nations are considering strategic Bitcoin reserve proposals, while private and public companies are buying bitcoins for their corporate treasuries. Over a million bitcoins are now held in corporate treasuries of private and public firms.
Genius Group Limited, based in Singapore, is an AI-driven education and acceleration company with over 5.4 million students globally. The company’s unique Bitcoin-first approach implies that most (90%) of the company’s funds should be held in Bitcoin.
On December 30, 2024, Genius Group announced it had bought $10 million worth of Bitcoin, increasing its Bitcoin holdings by 50%. The total amount of cryptocurrency bought by Genius Group amounted to 319.4 BTC.
Following this move, Genius Group’s stock price saw an 11% increase. The company’s Bitcoin-first strategy was announced on November 12, 2024, and the Q4 2024 Bitcoin yield is estimated at 1,649%. CEO Roger Hamilton stated that the company would explore various options to maximize shareholder value.
The company switched to a Bitcoin Treasury Key Performance Indicator, believing that the Bitcoin Standard would be beneficial for both the company and its shareholders. This KPI shows if the company’s market cap is above or below the value of its Bitcoin reserves.
Corporate Bitcoin Reserves: A Growing Trend
The acquisition of hundreds of bitcoins drew a lot of attention to Genius Group Ltd., although it is not the first company to do so. With the growth of the crypto market in November 2024 and the intensification of pro-crypto narratives in various media, many public and private companies began to create corporate Bitcoin reserves and estimate their value in bitcoins alongside traditional assets like the American dollar.
As of January 6, 2024, Coingecko listed 32 public companies holding bitcoins. The Bitcoin Treasuries tool provides information on over 70 public companies that hold bitcoins. Tesla was one of the first companies to set a Bitcoin reserve, which boosted the BTC price in 2021. Since then, other companies have made headlines with massive Bitcoin acquisitions.
MicroStrategy is the top company associated with the consistent growth of corporate BTC holdings and the sheer amounts of purchased bitcoins. With nearly 450,000 BTC, it holds over 2.1% of the total Bitcoin supply. Other leaders include Galaxy Digital Holdings, Tesla Inc., Riot Platforms Inc., and many more.
The trend is noticeable because it contrasts with the mainstream corporate approach to cryptocurrencies. Most companies still prefer to keep their distance from Bitcoin or approach it with caution. For instance, Microsoft shareholders voted against the proposal to add Bitcoin to the company’s balance sheets as the company is already doing well and investing in a volatile asset may make the investment potential of Microsoft less predictable for shareholders.
Companies may need bitcoins for various reasons. First, Bitcoin reserves serve as a hedge against inflation. In terms of publicity, Bitcoin reserves can enhance the company’s progressive image and attract more attention in the crypto community. Finally, in the bull market, acquiring BTC may be seen as an effort to quickly boost the company’s budget without having to produce, promote, or improve anything. However, the feasibility of investing much of the company’s assets in Bitcoin can be questioned as some experts warn about a potential market trend reversal.