Genius launches $12.5M preferred to rebuild Bitcoin treasury

Genius Group sold its remaining Bitcoin to repay $8.5 million of debt and has proposed a $12.5 million non‑convertible perpetual preferred offering to start rebuilding a Bitcoin treasury it targets at $827 million by fiscal 2031. The company says the initial raise would cover roughly 1.51% of that dollar goal before any allocation to artificial intelligence investments and an 18‑month dividend reserve.

Proceeds from the proposed preferred security would be divided among a new Bitcoin treasury, an AI investment portfolio and a cash reserve equal to about 18 months of preferred dividends. The company has not set the dividend rate or the percentage splits, so the amount of the $12.5 million that would be used to buy Bitcoin is not yet known. The securities are described as non‑convertible perpetual preferred shares that would pay a variable monthly rate; issue price, final size, timing, structure and any exchange listing remain subject to board approval, securities rules and market conditions.

Because the preferreds would not convert into ordinary shares at issuance, the offering would not cause immediate common‑share dilution. Preferred holders would rank ahead of ordinary shareholders for monthly dividend payments and in liquidation claims. The cash cost of the program cannot be determined until the dividend rate and the total amount sold are fixed.

Genius reported it sold its remaining Bitcoin and used the proceeds to repay $8.5 million. Its most recent audited year‑end filing showed $2.42 million in cash. An August update reported unaudited June net assets of $106.6 million and no third‑party debt but did not disclose a current cash balance.

Bridging the gap to an $827 million treasury would require repeated securities sales or other financing well beyond the initial offering. The company noted a $1.2 billion shelf registration that became effective in July 2025, which permits securities sales over time but does not represent committed investor capital. An April 2026 prospectus supplement under that shelf set an approximately $8 million public offering.

Using a Bitcoin price near $79,900, $12.5 million would buy roughly 156 BTC while an $827 million target would equal about 10,349 BTC. The $827 million figure is a long‑range dollar target rather than a committed purchase schedule. Investors will look for offering materials that define the preferreds’ dividend rate, issue price, final size and the allocation among Bitcoin purchases, AI investments and the dividend reserve.