SINGAPORE - Genius Group Limited (NYSE American: GNS), an education group focused on AI and Bitcoin, has recently increased its Bitcoin holdings by purchasing an additional $4 million worth of the cryptocurrency, bringing its total investment to $14 million for 153 Bitcoin. This purchase, executed at an average price of $91,372 per Bitcoin, is part of the company's strategy to invest heavily in Bitcoin, with a stated goal of reaching a $120 million investment in the digital asset.
The recent acquisition of Bitcoin follows the company's initial $10 million investment on November 18 and is aligned with its announcement on November 12 regarding a Bitcoin-first approach. Genius Group intends to allocate 90% or more of its current and future reserves to Bitcoin.
In a recent podcast aired on Sunday, Genius Group CEO Roger Hamilton, alongside board members and blockchain experts Thomas Power and Ian Putter, discussed the rationale behind companies establishing Bitcoin Treasuries. They also introduced the Genius Group Bitcoin-First 10 Step Plan, aimed at guiding other companies interested in adopting a Bitcoin-first strategy.
The plan includes building a Bitcoin-supportive board, committing to a Bitcoin-first strategy, setting a clear target for Bitcoin holdings, and selecting a favorable jurisdiction and custodian for the operations, with Singapore and Coinbase (NASDAQ:COIN) Singapore being the choices for Genius Group.
The company's broader vision involves upgrading its Edtech platform to incorporate blockchain technology and Bitcoin, not only as a payment method but also as the primary asset in its treasury. This aligns with its mission to prepare students and professionals for the future decentralized economy through AI and blockchain-based educational systems.
Genius Group has emphasized the importance of speed in implementing this strategy due to the growing global interest in Bitcoin. They advocate for consistent purchasing, focusing on long-term strategy rather than short-term market fluctuations.
This information is based on a press release statement and reflects the company's strategic direction in cryptocurrency investment as it aims to position itself at the forefront of the intersection between education and emerging digital technologies.
In other recent news, Genius Group Limited reported a substantial 130% increase in revenue for the first half of 2024, reaching $20.7 million. The company also experienced a reduction in its adjusted EBITDA loss by 37%, with a net loss of $4.6 million, marking a significant change from the $7.3 million net loss in the first half of 2023. Recently, Genius Group reshuffled its Board and Management team, appointing four new directors and an Interim CFO, following the resignation of four directors due to conflicts of interest and breaches of fiduciary and statutory duties.
The company also launched GeniusGroup.AI, a global AI education platform, as part of its expansion strategy. In addition, Genius Group completed Phase 1 of a $22 million contract with the government of Kazakhstan to develop a Sovereign AI and secured approximately $3.8 million from the exercise of Series 2024-C warrants, managed by H.C. Wainwright & Co.
Moreover, the company's CEO, Roger Hamilton, acquired 500,000 ordinary shares and received approval for the purchase of up to 10 million shares, reflecting confidence in the company's future. However, Genius Group announced the cancellation of its Extraordinary General Meeting after reevaluating the Proposed Share Consolidation plan. These are the recent developments for Genius Group.
InvestingPro Insights
Genius Group's bold move into Bitcoin aligns with its innovative approach to education and technology, but it's crucial to consider the company's financial health alongside this strategy. According to InvestingPro data, Genius Group has a market capitalization of $18.72 million USD, which is relatively small compared to its ambitious Bitcoin investment plans.
InvestingPro Tips highlight that while analysts anticipate sales growth in the current year, the company is "quickly burning through cash" and "short term obligations exceed liquid assets." These factors could pose challenges as Genius Group pursues its Bitcoin-first approach.
The company's revenue growth is noteworthy, with a 26.76% increase in the last twelve months as of Q4 2023, and an even more impressive 49.12% growth in Q4 2023 alone. However, the operating income margin stands at -89.45%, indicating significant operational costs that may need addressing.
Investors should note that Genius Group's stock has shown significant volatility. An InvestingPro Tip points out that the "stock generally trades with high price volatility," which is evident in the contrasting price performances: a strong 33.86% return over the last month, but a substantial -85.67% year-to-date return.
While the company's Bitcoin strategy is forward-thinking, it's important to consider that Genius Group is "not profitable over the last twelve months," according to another InvestingPro Tip. This context is crucial when evaluating the risks and potential rewards of their cryptocurrency investments.
For a more comprehensive analysis, InvestingPro offers 13 additional tips for Genius Group, providing deeper insights into the company's financial position and market performance.
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