7 hours ago
9
Singapore-based artificial intelligence-driven edtech firm Genius Group doubled its Bitcoin treasury to 200 BTC as part of its long-term strategy to build a 10,000-BTC treasury reserve.
According to a Tuesday announcement, Genius Group acquired 20 Bitcoin (BTC) on July 18. Bitcoin traded between $117,000 and $120,600 on the day, according to Nansen data.
The announcement said the 20 BTC was acquired at an average price of $106,812 per BTC — 9.5% to 12.9% lower than market price. With a total purchase price of $2.14 million for BTC worth $2.35 million at the time of writing, Genius has already made a total profit of $216,000, or roughly 9.8, according to the announcement.
Genius Group did not immediately answer Cointelegraph’s request for an explanation of how the discounted BTC purchase was secured.
Genius Group plans to increase its Bitcoin holdings to 1,000 BTC by the end of 2025 and reach 10,000 BTC within the next two years. The company said the passage of the Government Evaluation of New Innovations in the US Act, known as the GENIUS Act, will help accelerate its blockchain-based education initiatives.
The company said it also plans to apply for a permitted payment stablecoin issuer (PPSI) license under new US rules and a separate license to act as a non-bank digital asset service provider (DASP).
The company’s latest BTC purchase follows its late June announcement of a plan to distribute any potential proceeds from two lawsuits seeking combined damages of more than $1 billion. In mid-June, Genius Group increased its Bitcoin treasury by more than 50%, acquiring 34 BTC.
Tokenized merit rewards and stablecoin ambitions
Genius Group said the GENIUS Act will allow it to expand Genius Academy, its blockchain-powered learning platform. The academy awards students with Genius Education Merits (GEMs), each equivalent to one Satoshi (one millionth of a Bitcoin).
GEMs can be earned and redeemed like airline miles but are not exchangeable for fiat or crypto. If approved for the PPSI license, Genius Group said it plans to convert GEMs into a stablecoin usable as digital currency within its ecosystem.
Related: GENIUS Act can make stablecoins ‘part of US financial infrastructure’
Educators, mentors and partners are currently paid using traditional financial infrastructure. With a PPSI license, the firm aims to allow direct stablecoin payments to digital wallets instead.
Genius Group is also developing onchain courses and certifications. If approved as a DASP, the company says these credentials would be recognized as regulated digital assets, giving educators blockchain-based intellectual property rights.
The company also plans to host in-person accelerators and retreats, where participants can use GEM or its future stablecoin to pay for food, lodging, entertainment and other services.
Related: GENIUS Act blocks Big Tech, banks from dominating stablecoins: Circle exec
Genius Act to benefit Ethereum
The GENIUS Act creates a national licensing framework for stablecoin issuers, mandates one-to-one reserves, prohibits unbacked algorithmic stablecoins, and subjects issuers to Anti-Money Laundering rules. It also gives stablecoin holders senior creditor status in case of issuer insolvency.
Andrew Keys, the CEO of just-announced yield-bearing Ether fund Ether Machine, said that Ethereum is the largest beneficiary of the GENIUS Act. In a Monday interview on CNBC, he highlighted that Ethereum allows for the tokenization of assets, including stablecoins.
Andrew Keys talking on CNBC. Source: CNBC“The largest beneficiary of the GENIUS Act is Ethereum, because the majority of stablecoins are deployed on top of Ethereum,” he said.
He added that Ethereum is displaying “power law dynamics,” with around 90% of tokenized assets and stablecoins built on its network, similar to how most internet searches occur via Google.
Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
English (US) ·