On December 30, 2024, the education technology company Genius Group Ltd made headlines by purchasing an impressive $10 million worth of Bitcoin. The company’s overall strategic vision includes converting a substantial 90% of its available funds to Bitcoin (BTC), marking a strong commitment to integrating cryptocurrency into their financial framework. In recent months, there has been a notable trend of companies worldwide opting for Bitcoin as their primary asset within corporate treasuries, a choice that signals a shift in how businesses view digital currencies.

Genius Group Bitcoin Reserve

As numerous countries formulate strategic reserve proposals regarding Bitcoin, both public and private enterprises have started to acquire bitcoins to fortify their corporate treasuries. Currently, corporate holdings from various companies account for over one million bitcoins collectively. This increasing trend showcases a growing acceptance of Bitcoin in the traditional business landscape, transforming it into a serious asset class for corporate finance.

Headquartered in Singapore, Genius Group Limited is an AI-powered education and acceleration company that boasts a student enrollment of over 5.4 million globally. One of the company’s most distinctive traits is its Bitcoin-first strategy, which dictates that the vast majority of its financial resources—90%—should be held in BTC. This forward-thinking approach underlines Genius Group’s dedication to leveraging cryptocurrency in a unique manner that is not commonly seen.

Following the recent acquisition of $10 million in Bitcoin, Genius Group increased its crypto holdings by an impressive 50%, bringing its total Bitcoin reserves to approximately 319.4 BTC. This strategic move not only highlights the company’s commitment to its Bitcoin-first approach but also aligns with the growing trend of organizations safeguarding their assets using cryptocurrencies.

The stock price of Genius Group saw a notable 11% increase immediately following this acquisition, showcasing the positive market response to the company’s bold strategy. The initiative towards “bitcoinization” within the company was publicly announced on November 12, 2024, and the estimated Bitcoin yield for the fourth quarter of 2024 stands at an astonishing 1,649%. As highlighted by CEO Roger Hamilton, Genius Group is actively exploring various strategies to maximize shareholder value, thereby promising to keep the interests of its investors at the forefront of their operations.

The Genius Group has transitioned to a Bitcoin Treasury Key Performance Indicator (KPI), a decision attributed to the management’s strong belief that adopting the Bitcoin Standard would yield considerable benefits for both the company and its shareholders. This KPI is an innovative metric that gauges whether the company’s market capitalization is exceeding or falling below the value of its Bitcoin reserves, thus providing key insights into the company’s financial health.

In a statement to crypto.news, Genius Group expressed their unwavering commitment to Bitcoin:

“We believe a new type of future-focused, AI-driven, blockchain-based public listed companies can bridge the divide for investors between the current, centralized and regulated world of NYSE, NASDAQ and other stock markets with the future promise of decentralized, exponential economies. Genius Group’s unique position of already educating for the future gives us an opportunity to bring a layer of added value through education, where we prepare the next generation for a world in which how they earn and learn are dramatically different.

The Genius management team believes that with the rise of AGI and the ongoing need for sound money, that Bitcoin was a clear choice for a treasury asset to preserve and grow long-term shareholder value. Being a Singapore-incorporated company, with 0% capital gains tax, gives us an additional advantage in our Bitcoin-first strategy.”

When asked about their market timing strategy for Bitcoin acquisitions, the company clarified:

“As fundamental believers in the long-term potential of Bitcoin, we don’t try to time the market, but rather buy and hold with the intention of never selling.”

Corporate Bitcoin Reserves: The Emerging Trend

The acquisition of such a significant quantity of Bitcoin has generated considerable interest in Genius Group Ltd. However, it is crucial to note that they are not the first company to adopt this strategy. As the crypto market began to exhibit robust growth in November 2024, the pro-crypto sentiment surged across various media platforms, prompting numerous public and private entities to adopt the Bitcoin Standard. These organizations are increasingly calculating their corporate value in terms of Bitcoin, equivalent to traditional assets such as the US dollar. A notable example includes Thumzup Media, which has already declared its intent to hold 90% of its liquid assets in Bitcoin, investing $1 million in the cryptocurrency on January 9, 2025.

According to data from Coingecko as of January 6, 2024, 32 public companies currently hold Bitcoin, while the Bitcoin Treasuries tool identifies over 70 organizations with Bitcoin holdings. Tesla, recognized as one of the pioneering companies in this regard, sparked enthusiasm in the market with its decision to adopt Bitcoin reserves in 2021, significantly boosting BTC prices. Since that time, a host of other firms have made headlines with their substantial Bitcoin acquisitions.

MicroStrategy, for example, has emerged as the leading company associated with persistent growth in corporate Bitcoin holdings, possessing nearly 450,000 BTC, which accounts for over 2.1% of the total Bitcoin supply. Following closely behind is Marathon Digital Holdings, with over 26,000 BTC in its reserves. Other notable corporate leaders in Bitcoin investments include Galaxy Digital Holdings, Tesla Inc., Riot Platforms Inc., and numerous others. Informative insights from Bitcoin Treasuries reveal that over 20 public companies own more than 1,000 BTC each, alongside eight private companies holding similar amounts in their treasuries. Block.one leads the private sector with its impressive holding of 164,000 BTC, followed by Tether Holdings Limited’s 83,000 BTC.

Despite this growing trend, it remains essential to recognize that a significant segment of the corporate world is still cautious about cryptocurrency investments. For instance, Microsoft experienced a pivotal vote from its shareholders regarding the incorporation of Bitcoin into its balance sheet; the proposal was ultimately rejected. Shareholders voiced their concerns that despite Microsoft’s successful performance, adding a volatile asset such as Bitcoin could introduce unnecessary unpredictability to their investment portfolio. MicroStrategy’s CEO, Michael Saylor, criticized this decision as an unfortunate “destruction of capital.”

There are compelling reasons companies may see the merit in expanding their Bitcoin reserves. Primarily, Bitcoin can serve as a hedge against inflation, providing financial protection against the devaluation of currency. With advisory firms like BlackRock suggesting allocating up to 2% of investment portfolios into Bitcoin, many companies consider following this guidance. Furthermore, accumulating Bitcoin reserves can enhance a company’s progressive image, attracting greater interest from the crypto community and tech-savvy investors. In a booming market, acquiring Bitcoin could also be perceived as a strategic move to rapidly enhance company finances without the need for additional production or marketing efforts.

However, there remain substantial concerns regarding the practicality of significantly investing company assets in Bitcoin. Some experts warn of a potential market trend reversal that could leave firms heavily invested in Bitcoin exposed to considerable risks.

For organizations navigating the often-complex realm of cryptocurrency investment, the AI legalese decoder tool can provide invaluable assistance. This AI-driven platform is designed to simplify and clarify the intricate legal jargon often associated with cryptocurrency transactions and corporate treasury strategies. By breaking down complex regulations and terms into easy-to-understand language, it empowers companies like Genius Group and others to make informed decisions while ensuring compliance with necessary legal standards. In addition to offering clarity on legal frameworks, the AI legalese decoder can assist firms in developing effective strategies that align with their Bitcoin goals, ultimately optimizing their corporate governance and risk management practices.