Diamond Equity Research Releases Update Note on Genius Group Ltd. (NYSE: GNS)
New York, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research Releases Update Note on Genius Group Ltd. (NYSE:GNS)
New York, NY
Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released an update note on Genius Group Ltd. (NYSE:GNS). The update note includes information on Genius Group Ltd.'s recent developments, management commentary, future outlook, and risks.
The update note is available below.
Genius Group February 2025 Update Note
Highlights from the note include:
- Genius Group Launches $33 Million Rights Offering to Strengthen Its Bitcoin Treasury: Genius Group's Board approved a rights offering aimed at raising up to $33 million to expand the company's Bitcoin Treasury, with 100% of net proceeds dedicated to purchasing Bitcoin. The offering provides shareholders with the opportunity to acquire additional ordinary shares at a fixed subscription price, reinforcing the company's commitment to its Bitcoin-first strategy. Key terms of the Rights Offering include:
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- Shareholder Rights Allocation: Each shareholder received one transferable right for every ordinary share held as of the record date on January 24, 2025, with the number rounded up to the nearest whole right. The company's ordinary shares began trading ex-rights on January 24, 2025.
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- Subscription Details: Each right entitles the holder to purchase one ordinary share at a subscription price of $0.50. Shareholders fully exercising their basic subscription rights are eligible for an over-subscription privilege, which allows them to subscribe for additional ordinary shares on a pro rata basis. Rights holders may also choose to sell any rights they opt not to exercise.
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- Trading and Expiration Details: Rights trading commenced on a "when-issued" basis on January 23, 2025, under the symbol "GNS RTWI." Regular trading of the rights began on January 27, 2025, under the symbol "GNS RT" and will continue until the close of trading on February 13, 2025. The offering expires at 4:30 p.m. Eastern Time on February 14, 2025, unless extended by the company. Registered shareholders received rights certificates based on the company's stockholder registry, while those holding shares in "street name" will see the rights reflected in their brokerage accounts.
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- Additional Potential Funding: In addition to the $33 million rights offering, the company plans to pursue additional loan financings of up to approximately $22 million. If fully secured, this combined funding is expected to boost the Bitcoin Treasury from current levels, reported between $40 million and $45 million, to a range between $86 million and $100 million.
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- Management Participation: Complementing this initiative, Founder and CEO Roger Hamilton has completed his planned transactions, having acquired 500,000 shares under the pre-approved plan and subsequently purchasing an additional 500,000 shares on January 15, 2025, resulting in a holding of approximately 6.8 million shares. Mr. Hamilton has also notified the Company that he will fully subscribe to his rights under this Rights Offering, which will entitle him to acquire an additional 6.8 million shares on the same terms as all shareholders on the Record Date.
This rights issue follows Genius Group's established Bitcoin treasury approach and can be positive for shareholders if Bitcoin's momentum persists-currently trading above $96,000 and recently peaking at $108,000. However, should Bitcoin's price fall, the impact on shareholders could be less favorable, as the benefits of this initiative are closely tied to Bitcoin's continued upward performance, which some analyst reports suggest is likely to persist.
- Genius Group Expands Bitcoin Treasury to $42 Million Amid Strategic Financial Milestones: Genius Group has further advanced its Bitcoin-first strategy by acquiring an additional $12 million of Bitcoin, bringing its Bitcoin Treasury to 440 Bitcoin at a new average price of $95,519 per Bitcoin. This $42 million purchase, completed within three months of the November 12, 2024 announcement to allocate 90% or more of its current and future reserves to Bitcoin (with an initial target of $120 million), builds on an earlier milestone where the company secured 319.4 Bitcoin for $30 million at an average price of $93,919 per Bitcoin within two months. At an earlier date, as of Friday, January 31, 2025, Genius Group's 440-Bitcoin holding was valued at $46 million, while the company's market capitalization was $33.1 million (derived from 68.8 million issued shares trading at $0.48), resulting in a BTC/Price ratio of 139%, making Genius Group one of the highest among its peers. This ratio tells us that 139% of Genius Group's market value is directly backed by its Bitcoin holdings, a stark contrast to the industry average of approximately 40% observed among other popular Bitcoin treasury companies, such as Microstrategy, Marathon Digital Holdings, and Riot Platforms. Funding for these purchases has been sourced from a mix of internal reserves, the use of its ATM facility, and debt financing from crypto-backed loan platform Arch Lending. In addition, the company has approved a Founder Compensation Plan with Founder and CEO Roger Hamilton that sets forth long-term milestones, including goals to reach a $1 billion market cap and to grow the Bitcoin Treasury's net asset value to $1 billion within the next 10 years.
About Genius Group Limited
Genius Group Ltd. (NYSE:GNS) is a Bitcoin treasury company with an AI powered education platform engaged in providing AI training and AI tools to 5.4 million students in over 200 countries worldwide. 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 02/10/2025, the issuer had paid us $81,000 for our research services, which commenced 04/16/2022 and was billed annually for the first year for $27,000 and after in equal installments of $13,500 for six-month semi-annual periods with $13,500 received in April 2023 for six-month terms. $27,000 was paid in May 2024 (payment was for two outstanding six-month payment terms of October 2023 and April 2024, allocated to the following six-month periods of research coverage in each respective period), and $13,500 received in November 2024 for the October 2024 six-month semi-annual period of coverage. 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 02/10/2025 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. 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 initiation report and in the respective financial filings for Genius Group Limited. Please consult the attached research report for disclosures.
Contact:
Diamond Equity Research
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