Diamond Equity Research Releases Update Note on Genius Group Ltd. (NYSE: GNS)
New York, Sept. 25, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released update note on Genius Group Ltd. (NYSE: GNS). The update note includes information on the Genius Group Ltd.' financial results, management commentary, recent developments, outlook, risks, and our revised valuation estimates. The research summary below is from a report commissioned by Genius Group Ltd. and produced by Diamond Equity Research. Investors can find various risk factors in the update report and in the respective financial filings for Genius Group Limited.
The update note is available below.
Highlights from the note include:
- Bitcoin Treasury Rebuilt to 200 BTC with Accelerated Purchases and a Broader Funding Plan: Genius Group has rebuilt its Bitcoin Treasury to 200 BTC as of July 21, 2025, following a series of disclosed additions since purchases resumed on May 22 after the appellate stay. The company reported 85.5 BTC on May 22 at an average cost of $99,700 per Bitcoin, then increased to 100 BTC on June 16 with a cumulative cost of $10.06 million and a $100,600 average. It accelerated buying to 120 BTC on July 1 at a $101,539 average, to 148 BTC on July 7 at a $102,858 average, and to 180 BTC on July 12 at a $105,568 average. On July 21, the company reached 200 BTC at an average price of $106,812 per bitcoin and cited a BTC Yield of 186% since May 22, supported by a one million share buyback and use of flexible Bitcoin loans at about 40% loan to value to enhance Bitcoin per share accretion. Management first restated a near-term 1,000 BTC objective on July 2, then raised the medium-term target to 10,000 BTC on July 7 with a 12 to 24 month timeline and a commitment to ongoing purchases. The July 7 update also introduced BTC Yield as a key performance indicator (KPI), defined by management as the period-to-period percentage change in the ratio of change in Bitcoin holdings to change in assumed diluted shares outstanding. Funding tools now include an at-the-market program with up to $1.1 billion of capacity, comprising $100 million off the current effective shelf and a further $1.0 billion contingent on a new $1.2 billion shelf becoming effective, alongside debt, low-cost convertibles, preferred shares, and operating cash flow. The Board has also approved a distribution framework for any future legal recoveries, with 50% of net proceeds to shareholders as a special dividend and 50% to additional Bitcoin purchases. We note the current Bitcoin price of about $113,000, which implies a mark-to-market value of roughly $23.0 million for 200 BTC, while the company continues to prioritize positive BTC Yield and Bitcoin per share growth.
- Genius Group Positions for Stablecoin Issuance and Digital Asset Services Under the GENIUS Act to Expand Learn and Earn Ecosystem: With the passage of the GENIUS Act on July 18, 2025, Genius Group plans to apply as a nonbank Permitted Payment Stablecoin Issuer and a Digital Asset Service Provider either at the holding company or through a wholly owned subsidiary. The effective date is the earlier of 18 months from enactment or 120 days after the issuance of final regulations, and the regulations are scheduled to be issued within one year of enactment. The company intends to extend the Genius Wallet beyond today's GEMs credits, which are pegged one-to-one to Satoshis and are currently non-cash platform credits, to include an issuer-backed stablecoin for tuition payments, mentor and partner payouts, and cross-border transactions with lower fees and faster settlement. The plan includes recording courses and certifications on chain so they become regulated digital assets with associated intellectual property rights, enabling verifiable learner credentials and ongoing educator participation. Over time, management aims to integrate these rails into Genius Resorts and a broader Genius City model so that students can earn and redeem within the ecosystem for both digital and real world spending, while remaining compliant with United States and Singapore law and with the requirements of the Securities and Exchange Commission, the New York Stock Exchange, and the regulators charged with implementing the Act. Management positions these steps as complementary to the Bitcoin Treasury strategy, with a goal of growing the education business and increasing Bitcoin per share over time.
- Genius Group Reports H1 2025 Results Impacted by Preliminary Injunction but Stronger Second Half Targeted: For the first half of 2025, Genius Group's financial performance was significantly constrained by a preliminary injunction that restricted its ability to raise funds and build its Bitcoin Treasury, leading to forced Bitcoin liquidations and elevated legal costs. On a pro forma basis, including pending acquisitions, revenue came in at $6.1 million, representing 25% year-on-year growth, driven by contributions from Entrepreneur Resorts (ERL) and ProEd Education. However, on a review basis (excluding acquisitions), revenue declined to $2.7 million compared with $4.9 million in the prior-year period, reflecting the closure of loss-making subsidiaries and downsized operations during the injunction period. Operating expenses rose to $13.5 million on a pro forma basis versus $10.8 million in H1 2024, with the increase largely attributed to legal and compliance costs linked to the LZGI dispute. The company reported a net loss of $17.3 million on a pro forma basis (or $18.5 million on review basis), compared with an $8.8 million loss in H1 2024. Notably, Genius Group calculated that $15.9 million of these losses were directly tied to the injunction, including forced Bitcoin sales, legal fees, and related costs. This forms a central part of the company's RICO lawsuit, where it is seeking $750 million in treble damages. Loss per share improved to ($0.36) versus ($0.84) in H1 2024, a 57% reduction, reflecting a larger share base. On the balance sheet, pro forma cash and equivalents increased to $3.7 million as of June 30, 2025 ($2.70 million on review basis), up from $1.6 million at year-end 2024, while current assets fell 23% to $32.5 million as forced Bitcoin liquidations reduced holdings from 319 BTC at year-end 2024 to 100 BTC by mid-2025. Total assets, however, rose to $121.3 million on a pro forma basis, reflecting the value of acquisitions signed in the second half, compared with $101.1 million at year-end 2024. Net assets also strengthened to $85.6 million on a pro forma basis, an 8% increase from December 2024. Management emphasized that the second half of 2025 has already proven to be the strongest in the company's history, with successful M&A transactions, rapid growth in its Genius Academy, expansion of its Bitcoin Treasury, and the launch of its Genius City model. Importantly, market capitalization has risen more than 600% over the past six months, positioning Genius Group to target growth into 2026.
- Valuation: Genius Group continues to target a multi-pronged strategy anchored by its Bitcoin Treasury expansion, ecosystem buildout, and litigation optionality. The Bitcoin Treasury has reached 200 BTC, with management now targeting up to 10,000 BTC, while share buybacks and float reduction support accretion for existing shareholders. The completed acquisition of Entrepreneur Resorts has lifted 2025 revenue guidance by 50% and, together with agreements at Nuanu Creative City, provides the foundation for scaling the Genius City and Genius Resorts model, including Asia's first Bitcoin-based tokenized community. At the same time, fintech initiatives under the GENIUS Act position the company for stablecoin issuance and digital asset services, extending its platform beyond education. Governance has also been reinforced through shareholder approvals, new board advisors, and the launch of the Genius Academy featuring prominent thought leaders. Looking ahead, key catalysts include the October 2025 Genius City Summit and the planned Asian dual listing, while legal proceedings such as the RICO case remain strategic swing factors with potential asymmetric upside. We have updated our valuation framework to reflect the reintegration of ERL's operations, the latest reported financial results, and recent buyback activity, while also incorporating the updated shares outstanding. In addition, we have reassessed our comparable company analysis to align with current sector valuations and market dynamics. As a result, we derive an updated valuation of $3.40 per share, contingent upon continued successful execution by management.
About Genius Group Limited
Genius Group (NYSE: GNS) is a Singapore-based EdTech and education company engaged in providing educational services in over 200 countries. It aims to develop an AI-powered lifelong learning curriculum and make its educational products accessible worldwide to all age groups.
For more information, visit https://www.geniusgroup.net/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Genius Group Limited for producing research materials regarding Genius Group Limited, and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 09/25/25, the issuer paid us $94,500 for our research services, which commenced on 04/16/2022. The first year was billed annually for $27,000. Thereafter, payments were made in equal installments of $13,500 for six-month semi-annual periods, with $13,500 received in April 2023 for the April to October 2023 period. A payment of $27,000 was made in May 2024 to cover two outstanding six-month terms corresponding to terms starting October 2023 and April 2024. An additional $13,500 was received in November 2024 for the October 2024 to April 2025 period, followed by another $13,500 payment received in June 2025 for the April 2025 to October 2025 coverage period. Diamond Equity Research LLC may be compensated for non-research-related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has paid us for non-research related services as of 09/25/2025 consisting of $3,000 for presenting at a virtual investment conference and $2,000 for organizing an investment dinner. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. This report does not explicity or implicity affirm that the information contained within this document is accurate and/or comprehensive, and as such should not be relied on in such a capacity. All information contained within this report is subject to change without any formal or other notice provided.This report does not consider individual circumstances and does not take into consideration individual investor preferences. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the update report and in the respective financial filings for Genius Group Limited. Please review update report attached for full disclosure page.
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