In a bold move echoing MicroStrategy’s pioneering approach, Genius Group, an artificial intelligence (AI) education technology company, has announced its decision to make bitcoin the cornerstone of its financial reserves.
This move comes as bitcoin’s price reaches new highs, sparking widespread interest across industries.
Genius Group, based in Singapore, revealed it would commit 90% of its reserves to bitcoin, marking the start of a “Bitcoin-first” strategy aimed at positioning the company for future growth in the tech and education sectors.
This announcement, along with bitcoin’s recent price surge, has led to a significant spike in the company’s stock, with shares briefly jumping by as much as 150% on the New York Stock Exchange (NYSE).
The decision signals the firm’s belief in Bitcoin’s role as a stable store of value that can support future technological advancements.
Genius Group’s Director Thomas Power stated:
“Genius Group is focused on educating students for the exponential technologies of the future. We see Bitcoin as being the primary store of value that will power these exponential technologies.”
Ian Putter, Director at Genius Group and former Blockchain Domain Head at Standard Bank, highlighted this decision, adding, “Being a Singapore-incorporated company, with 0% capital gains tax, gives us an additional advantage in our Bitcoin-first strategy.”
This Bitcoin strategy involves several major initiatives aimed at integrating the scarce digital asset into its core operations.
The company will initially acquire up to $120 million in bitcoin, using funds from a $150 million at-the-market (ATM) facility, and plans to hold this bitcoin as a long-term asset.
Genius Group aims to mimic the investment strategy of MicroStrategy, a U.S.-based enterprise software company that began investing heavily in bitcoin in 2020 and now holds over 279,000 BTC, valued at approximately $25 billion.
The Singaporean AI company also intends to launch bitcoin payment options on its Edtech platform, which offers educational resources powered by AI.
Additionally, the company is preparing a series of educational materials focused on Bitcoin and blockchain technology to help students and investors understand the benefits of decentralized finance.
Power emphasized that Genius Group is following the trail blazed by MicroStrategy, saying:
“The compelling case that we believe Michael Saylor and MicroStrategy have made for public companies to invest in Bitcoin as their primary treasury reserve asset is one that we fully endorse.”
Investors reacted swiftly to the announcement, with shares in Genius Group (GNS) surging by as much as 166% on the day of the news. The stock closed 85% higher at $1.05 on Nov. 12, reaching as high as $1.49 earlier that day.
After-market trading pushed it even further, with a closing price of $1.71. Though the stock price has fluctuated, it remains notably higher than before the announcement.
Bitcoin’s recent price surge has also played a role in fueling interest in Genius Group’s stock. With bitcoin hitting an all-time high of $93,519, the digital asset’s bullish performance has inspired several companies, including Genius Group, to adopt it as a reserve asset.
The surge also follows recent shifts within Genius Group’s leadership, with the company restructuring its board to bring in advisors with extensive experience in blockchain and Bitcoin. This strategic reshuffling is seen as a preparatory step for the firm’s Bitcoin-focused roadmap.
Genius Group is not the first company to adopt bitcoin as a treasury reserve.
MicroStrategy, led by CEO Michael Saylor, was among the earliest companies to shift its treasury assets to bitcoin in 2020 as a hedge against inflation.
Following in MicroStrategy’s footsteps, several companies, including Semler Scientific and Tokyo-based investment advisor Metaplanet, have also built up bitcoin reserves in recent months.
Related: Metaplanet’s Latest Bitcoin Purchase Pushed Its Holdings Past 1,000 BTC
In a broader context, Bitcoin’s appeal is growing beyond private firms, with governmental interest emerging as well.
Former U.S. President Donald Trump recently announced plans to create a bitcoin reserve for the U.S. Treasury, a move that aligns with efforts by legislators like Senator Cynthia Lummis, who introduced a bill for the government to accumulate up to 1 million BTC.
Genius Group’s bitcoin-first strategy is further supported by Singapore’s tax policies. Operating under a 0% capital gains tax regime, the company may experience greater flexibility in building its bitcoin reserve without facing significant tax implications.
According to Genius Group’s CEO Roger Hamilton, the decision to shift to bitcoin also comes in light of previous challenges the company has faced, including legal disputes that impacted its share price.
Hamilton noted that adopting decentralized technologies, including Bitcoin, is part of Genius Group’s approach to rebuilding investor confidence.
“We believe every step the company can take to embrace transparent, decentralized, blockchain-based technology is an opportunity to reset Genius Group’s share price,” Hamilton stated.
Founded in 2002, Genius Group has grown as a leader in AI-driven educational technology, providing resources for a wide range of students, from primary schoolers to entrepreneurs and government organizations.
The company’s new bitcoin-based strategy complements its mission to equip students with the skills needed to navigate “exponential technologies” that are reshaping various industries.
The company’s commitment to Bitcoin and its educational initiatives on blockchain technology reflect its belief in preparing students for a world where digital assets and decentralized systems play a significant role.
By aligning with the vision of industry leaders like MicroStrategy, Genius Group hopes to use bitcoin to solidify its financial position and support long-term growth, even as market trends shift.
As Genius Group continues to develop its bitcoin-focused strategy, its leadership remains optimistic. Power explained, “With our bitcoin-first strategy, we aim to be among the first NYSE American-listed companies to fully embrace Bitcoin for the benefit of our shareholders.”
Whether Genius Group’s bold strategy will yield long-term success remains to be seen, but its clear commitment to Bitcoin positions it as a potential pioneer in the intersection of education technology and Bitcoin.
