Genius plans STRC-style shares to rebuild $827M BTC treasury

The U.S. Court of Appeals for the Second Circuit vacated a preliminary injunction on Aug. 31 that had limited Genius Group’s ability to issue shares, raise capital and buy Bitcoin. The order returned the underlying dispute to the Southern District of New York and cleared a legal hurdle to new financings.

Following the ruling, the Singapore-based education company announced a five-year capital plan that targets an $827 million Bitcoin treasury and an $800 million artificial intelligence portfolio. The company projects total assets of $2 billion by fiscal 2031.

Genius plans to issue preferred shares modeled on Strategy’s STRC securities and has proposed up to $1.2 billion of similar instruments. The company completed a first raise of $12.5 million, about 1.5% of the $827 million Bitcoin target. Final size, pricing and timing of further offerings remain subject to market conditions and board approval.

Proceeds from the preferred securities are to be divided among Bitcoin purchases, AI investments and a cash reserve intended to cover about 18 months of preferred dividends. CEO Roger James Hamilton described the structure as “designed to expand both treasuries without issuing additional ordinary shares, with returns above the preferred dividend rate flowing through to net asset value for common shareholders.”

Genius sold its remaining Bitcoin holdings in April and used the proceeds to repay $8.5 million of debt. The company had moved most of its reserves into Bitcoin in 2024 and reached a peak holding of roughly 440 BTC before the sale. Management plans to resume Bitcoin purchases in the fourth quarter but has not disclosed any new acquisitions.

The AGI Infinity Portfolio launched by Genius in May has begun deploying capital. The first investment was made in June and gives the company indirect pre-IPO exposure to private companies including OpenAI, Anthropic, SpaceX, Anduril and Databricks. Genius outlined an initial $100 million AI deployment across pre-IPO funds, listed infrastructure companies and businesses expected to benefit from AI adoption.

Genius reported $106.6 million in net assets and no third-party debt as of June 30. The company cited Strategy’s use of Bitcoin-backed preferred securities as a funding template; those securities have a market value that exceeds $13 billion.

Key open issues include investor demand for large preferred issues, the timing and scale of Bitcoin purchases, and the eventual balance between the AI and crypto treasuries. The appeals-court order removed a legal constraint but the financing program and asset purchases depend on market conditions and board decisions.