Shares of Genius Group, an AI-powered education provider, surged over 100% on Tuesday after the company announced plans to convert 90% of its treasury reserves into Bitcoin. The stock, which has lost more than 98% of its value since trading began, jumped from $0.58 to $1.16, pushing its market capitalization to $21.22 million.
The NYSE American-listed company intends to utilize its $150 million at-the-market (ATM) facility to purchase up to $120 million in Bitcoin as its primary reserve asset. However, this ambitious plan faces a significant regulatory hurdle – the company needs to reach a $75 million market capitalization to fully access the facility, more than triple its current value.
The announcement marks a dramatic pivot for Genius Group, whose stock has fallen from highs of nearly $100 per share during its early trading days to a 52-week low of $0.51. Despite reporting $23 million in audited revenue for 2023 and total assets of $43 million, the company’s market value has struggled to recover from its decline.
To support its new direction, Genius Group has restructured its board to include blockchain technology experts. Thomas Power, previously a board director at Team Blockchain and the Blockchain Industry Compliance and Regulation Association, and Ian Putter, former head of blockchain domain at Standard Bank and founder of the Blockchain Research Institute Africa, have joined to oversee the transition.
The AI education platform, which reports serving 5.4 million users across more than 100 countries, plans to implement Bitcoin payments globally on its EdTech platform. Additionally, the company will launch a Web3 Wealth Renaissance education series, using its AI-powered guides to teach students about Bitcoin, cryptocurrency, and blockchain technology.
The company is currently pursuing litigation against alleged market manipulators, with claimed damages exceeding $250 million. Through its Genius City model and online digital marketplace, the firm provides AI training, tools, and talent solutions, offering personalized entrepreneurial AI pathways at individual, enterprise, and government levels.
Genius Group’s incorporation in Singapore, with its 0% capital gains tax policy, could provide advantages for its Bitcoin strategy. The company plans to detail its cryptocurrency plans during a GeniusLIVE podcast featuring CEO Roger Hamilton and board members on November 19.
The stock’s dramatic rise following the Bitcoin announcement represents its largest single-day gain in recent months, though the share price is still down more than 98.5% since its all-time high of $96.80 (reached on 17 June 2022).
Featured Image via Pixabay
