Genius Group Limited, a Singapore-based educational technology firm with a focus on artificial intelligence and Bitcoin, announced on Friday its decision to bolster its Bitcoin Treasury with a $5 million acquisition. This purchase increases the company's total Bitcoin holdings to 372 units, with a market value of $35 million, equating to an average of $94,047 per Bitcoin.
The company, which exhibits a high stock beta of 10.68, has embarked on a Bitcoin-centric strategy that was initiated on November 12. This strategy involves allocating 90% of its reserves towards Bitcoin, with an ambitious initial goal of reaching $120 million in Bitcoin investments.
Remarkably, Genius Group has already achieved 30% of this $120 million target ahead of schedule. As of Thursday, the market valuation of its Bitcoin holdings mirrors the acquisition cost, reflecting the current Bitcoin price at $94,000 per unit.
With a market capitalization standing at $40.32 million, the company reports a BTC/Price ratio of 83%. In the past year, Genius Group generated $16.15 million in revenue, yet it continues to face financial challenges with significant cash burn, as analyzed by InvestingPro. However, it maintains a robust current ratio of 2.52.
Moreover, Genius Group has expanded its loan agreement with Arch Lending, a platform specializing in crypto-backed lending, raising it from $10 million to $14 million, with a 40% loan-to-value ratio. The company has also sanctioned a Founder Compensation Plan for CEO Roger Hamilton. This plan is tied to achieving specific milestones, including elevating the net asset value of their Bitcoin Treasury to $1 billion within the next ten years.
On Friday, Genius Group's stock closed at $0.6551, marking a 2.3594% increase. However, in after-hours trading, the stock declined to $0.6502, a drop of 0.7480%, on the New York Stock Exchange.
