Bitcoins
If successful, Genius Group’s $1 billion lawsuits could net shareholders $7 per share while boosting the company’s Bitcoin holdings by 5,000 BTC.
Artificial intelligence-driven edtech firm Genius Group plans to distribute potential winnings from billion-dollar lawsuits to shareholders and use a portion to expand its Bitcoin treasury, the company said.
In a Thursday press release, the board of directors at Genius Group approved the distribution plan for repurposing any wins from two lawsuits that seek combined damages of more than $1 billion.
One lawsuit has been filed under the Racketeer Influenced and Corrupt Organizations Act (RICO), which seeks damages of over $750 million against LZGI International. The second is yet to be filed, according to Genius Group’s CEO, Roger Hamilton.
Hamilton said the company expects to claim at least $262 million based on 2023 data, with updated figures likely to increase that amount to account for damages in 2024 and 2025.
Hamilton said that the lawsuits aim to recover damages caused to the shareholders by the defendants.
“The Board believes that 100% of any proceeds from the successful outcome of these cases should be directly distributed or reinvested for the benefit of shareholders,” he said.
Bitcoins Splitting the lawsuit wins in equal halves
According to Hamilton, 50% of the winnings will be distributed among shareholders as a special dividend, while the other half will be redirected to the company’s Bitcoin (BTC) treasury.
If the company wins both legal battles, shareholders will receive a dividend of $7 per share, and Genius will buy and add 5,000 BTC to its treasury at current market prices of about $107,000 per Bitcoin.
Related: VanEck warns: Why Bitcoin treasury companies could face capital erosion
Future court winnings will also be subject to the distribution plan. However, the company clarified that “there is no guarantee” of any win or payouts in either case.
Bitcoins Genuis Group on a Bitcoin accumulation spree
On June 17, Genuis Group expanded its corporate Bitcoin treasury by more than 50% after making a series of BTC acquisitions. The company aims to acquire 1,000 BTC for its corporate treasury.
Genius Group was temporarily banned from selling shares, raising funds and using investor funds to buy Bitcoin, which was lifted after a month.
Magazine: North Korea crypto hackers tap ChatGPT, Malaysia road money siphoned: Asia Express
Cointelegraph by Arijit Sarkar Read More