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  • Genius Group to split $1B lawsuit proceeds between shareholders and its Bitcoin treasury

    Genius Group to split $1B lawsuit proceeds between shareholders and its Bitcoin treasury

    Genius Group to split $1B lawsuit proceeds between shareholders and Bitcoin treasury

    • Genius Group plans to split lawsuit wins between shareholder dividends and Bitcoin.
    • The company is pursuing two lawsuits seeking over $1 billion in shareholder-related damages.
    • Genius Group’s current BTC holdings stand at 100 BTC and it now targets 1,000 BTC as part of its treasury plan.

    Singapore-based edtech firm Genius Group has unveiled an ambitious plan to share potential legal windfalls from its ongoing billion-dollar lawsuits with shareholders while simultaneously deepening its investment in Bitcoin.

    In a move that could reshape the company’s financial future, the Board of Directors has approved a distribution framework that will allocate all net proceeds from its legal battles equally between direct payouts to shareholders and purchases of Bitcoin for its corporate treasury.

    This strategy marks a bold fusion of legal recourse and crypto investment, driven by a promise to compensate shareholders for damages the company alleges were inflicted by third-party misconduct.

    Genius Group is pursuing lawsuits seeking over $1B in damages

    Genius Group is actively pursuing two major lawsuits with combined damage claims exceeding $1 billion, each targeting different alleged abuses that the company says have harmed its investors.

    The first lawsuit, already filed in the US District Court for the Southern District of Florida, alleges violations under the Racketeer Influenced and Corrupt Organizations Act (RICO) and seeks over $750 million in damages from several individuals, including Peter Ritz, Michael Moe, Michael Carter, and former SEC Chairman John Clayton.

    According to the company, these defendants, through their roles in LZGI International and related entities, engaged in actions that caused direct financial harm to Genius Group and its shareholders.

    The second lawsuit, which is expected to be filed soon, focuses on alleged naked short-selling and spoofing activities that the company claims manipulated the trading of its shares.

    Led by attorney Wes Christian, a well-known legal figure in financial market litigation, the short-selling case is estimated to involve damages between $251 million and $263 million, with that figure expected to rise following further analysis of 2024 and 2025 trading data.

    A windfall for shareholders, if lawsuits succeed

    Genius Group has committed to splitting all net proceeds from these lawsuits evenly, with 50% allocated as special dividends to shareholders and the remaining 50% used to acquire Bitcoin.

    Chief Executive Officer Roger Hamilton emphasised that because these lawsuits seek to recover damages that directly affected shareholders, it is only fair that all recovered funds be returned to them or reinvested on their behalf.

    If the company is successful in both cases, each shareholder could receive up to $7 per share, offering a substantial return given the company’s current stock price.

    While there is no guarantee of a win in either lawsuit, the prospect of a significant payout and further crypto investment has drawn growing attention from retail traders and crypto enthusiasts alike.

    Genius Group’s Bitcoin strategy

    Genius Group’s interest in Bitcoin is not new, but the recent announcement reinforces the company’s serious intention to use BTC as a long-term treasury asset.

    Just last week, the company revealed that it had increased its corporate Bitcoin holdings by 52%, acquiring an additional 34 BTC to bring its total to 100 BTC.

    The purchases were made at an average price of approximately $100,600 per Bitcoin, amounting to an investment of more than $10 million.

    The company has stated that it intends to grow its Bitcoin holdings to 1,000 BTC over time, especially now that a previous US court restriction barring it from using investor funds to buy crypto has been lifted.

    Hamilton has framed Bitcoin as both a hedge against inflation and a vehicle for shareholder value, noting that future court winnings would also be subject to this new distribution model.

    Legal uncertainties remain

    Despite the company’s confidence, Hamilton acknowledged that there are legal uncertainties ahead, and no outcome can be guaranteed in either case.

    However, the aggressive dual-pronged strategy of rewarding investors while reinforcing a decentralised financial position has attracted renewed investor interest.

    This legal-crypto hybrid approach positions Genius Group as one of the few publicly traded companies tying shareholder dividends directly to potential lawsuit wins and Bitcoin acquisitions.

    As the cases proceed, both traders and shareholders will be watching closely, not just for court rulings but also for how Genius executes its promise to merge traditional legal settlements with modern digital asset strategies.
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  • Microsoft shareholders reject Bitcoin treasury proposal

    Microsoft shareholders reject Bitcoin treasury proposal

    • Microsoft shareholders have voted against the proposal that sought to have the tech giant add Bitcoin to its balance sheet.
    • The vote on Tuesday, December 10, 2024, followed the proposal by the National Center for Public Policy Research, and came after MicroStrategy founder and Chairman Michael Saylor added to the call for Microsoft to adopt a Bitcoin treasury via a presentation.

    On Dec. 10, details on the vote indicated Microsoft shareholders had rejected the proposal – meaning one of the world’s most valuable companies is not primed to add BTC to its treasury any time soon. Microsoft will not now take time to study the option of having the world’s largest cryptocurrency by market cap as part of its diversified portfolio.

    Saylor, whose company is the largest corporate holder of Bitcoin after a buying spree that started in 2020, said last week that Microsoft had the potential to add trillions of dollars to its market cap if it invested in the flagship digital asset.

    MicroStrategy acquired an additional 21,550 BTC worth $2.1 billion on Dec. 9, bringing its total haul 423,650 BTC bought for approximately $25.6 billion.

    Microsoft board urged shareholders to vote down proposal

    The “Assessment of Investing in Bitcoin” proposal by the National Center for Public Policy Research advocated for a 1% outlay of Microsoft’s assets into BTC. According to the proposal, the company should have weighed whether diversifying with Bitcoin to hedge against inflation was in the best interests of shareholders.

    Saylor offered a 3-minute presentation to Microsoft’s Board of Directors and the chairman and CEO Satya Nadella. The Bitcoin bull explained why taking this approach would have been the right thing for the company.

    The preliminary results of the shareholders’ vote means Microsoft could adopt this strategy at a time when BTC price will be much higher than the current $97k. The company’s board had last month asked shareholders to reject the proposal.

    Despite the outcome of the vote, some in the crypto industry are bullish on what it means to have such a proposal in place.

    Notably, the National Center for Public Policy Research has also submitted a similar proposal to Amazon.

    MSFT shares traded around $446.98 at the time of writing, with the performance largely flat on the day.  Bitcoin price fell below $95,000 on the news, reaching lows of $94,550. However, BTC was back above $95k at the time of writing as bulls target a retest of the psychological $100k level.

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  • Amazon shareholders call for the company to hold 5% of its assets in Bitcoin

    Amazon shareholders call for the company to hold 5% of its assets in Bitcoin

    • MicroStrategy’s stock has outperformed Amazon’s stock by 537% in the past year
    • The proposal calls for Amazon to include some Bitcoin to maximize shareholder value without taking on too much risk
    • Last week, Michael Saylor, CEO of MicroStrategy called on Microsoft to adopt Bitcoin, calling it “digital capital”

    A group of Amazon shareholders has requested that the company allocate 5% of its assets in Bitcoin.

    The National Center for Public Policy Research, a free-market, independent conservative think tank, submitted the proposal to Amazon for consideration at its 2025 annual shareholder meeting.

    The proposal, shared by Tim Kotzman, a podcast host covering Bitcoin and MicroStrategy, recommends adding “assets to its treasury that appreciate more than bonds, even if those assets are more volatile short-term.”

    The proposal points to Bitcoin’s price, which has increased more than 131% over the past year, outperforming corporate bonds by more than 126%, on average.

    “MicroStrategy – which holds Bitcoin on its balance sheet – has had its stock outperform Amazon stock by 537% in the previous year,” the proposal said.

    “And they’re not alone. Institutional and corporate Bitcoin adoption is becoming more commonplace: more public companies such as Tesla and Block have added Bitcoin to their balance sheets; Amazon’s second and fourth largest institutional shareholders – BlackRock and Fidelity, respectively – offer their clients a Bitcoin ETF; and the US government may form a Bitcoin strategic reserve in 2025.”

    The proposal points out that while Bitcoin is a “volatile asset,” Amazon’s stock was the same in the past. Because of this, companies have “a responsibility to maximize shareholder value over the long-term as well as the short-term,” adding:

    “Diversifying the balance sheet by including some Bitcoin solves this problem without taking on too much volatility. At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in Bitcoin.”

    Michael Saylor calls Bitcoin “digital capital”

    The shareholder proposal comes as Michael Saylor, CEO of MicroStrategy, said to Microsoft that Bitcoin is the best asset a company should own, claiming it represents the “greatest digital transformation of the 21st century.”

    In a three-minute video posted on X last week, Saylor said:

    “Microsoft can’t afford to miss the next technology wave, and Bitcoin is the next wave. Bitcoin represents the greatest digital transformation of the 21st century; it represents digital capital.”

    Talking about long-term capital, Saylor noted that risk – including general taxes, politics, recession, regulation, war, and the weather – is destroying over $10 trillion in capital each year.

    Because of this, investors are turning their attention to digital capital, such as Bitcoin, to avoid these risks. In Saylor’s view, “it makes sense” for Microsoft to buy and hold Bitcoin rather than buy back stock or hold bonds.

    “If you’re going to outperform, you’re going to need Bitcoin,” Saylor said. “You’ve surrendered hundreds of billions of dollars of capital over the past five years, and you’ve just amplified the risks that your own shareholders face. If you want to escape that vicious cycle, you’re going to need an asset without counterparty risk.”

    In Saylor’s opinion, that lies with Bitcoin.

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