Genius Group clears legal hurdle and adopts Bitcoin‑backed preferred securities to restart $827M treasury plan

Singapore‑based education firm Genius Group has secured a court decision that removes a preliminary injunction restricting its ability to issue shares, raise capital, and purchase Bitcoin. The U.S. Court of Appeals for the Second Circuit vacated the order on August 31, sending the dispute back to the Southern District of New York.

Capital plan and asset targets

Genius unveiled a five‑year plan that targets an $827 million Bitcoin treasury and an $800 million artificial‑intelligence (AI) portfolio, with total assets projected to reach $2 billion by fiscal 2031.

Preferred‑share financing model

The company intends to raise $1.2 billion through Bitcoin‑backed preferred securities, citing Michael Saylor’s Strategy (STRC) model as a template. Those securities currently have a market value exceeding $13 billion and are designed to fund long‑duration assets while limiting dilution of ordinary shareholders.

Use of proceeds

• Purchase Bitcoin – initial raise of $12.5 million covers roughly 1.5 % of the $827 million Bitcoin target.
• Invest in AI – part of the $800 million AI allocation, including a $100 million deployment across pre‑IPO funds and infrastructure companies.
• Cash reserve – sufficient to cover about 18 months of preferred‑dividend payments.

Current financial position

As of June 30, Genius reported net assets of $106.6 million and no third‑party debt. Earlier in 2024 the company built a Bitcoin reserve that peaked at 440 BTC, but legal constraints forced a sell‑down and complete exit from Bitcoin in April, with proceeds used to repay $8.5 million of debt.

Future steps

Genius plans to resume Bitcoin purchases in the fourth quarter of 2024, though no specific acquisition has been announced. Its AI exposure is already active, having launched the AGI Infinity Portfolio in May and made its first investment in June, providing indirect pre‑IPO exposure to firms such as OpenAI, Anthropic, SpaceX, Anduril and Databricks.