Genesis Global Holdco LLC won bankruptcy court permission to sell roughly 35 million Grayscale Bitcoin Trust shares worth more than $1.3 billion as the bankrupt crypto lender readies plans to compensate clients who lent it digital assets, Bloomberg News reported. Judge Sean Lane said Wednesday he’d grant Genesis’ request to sell the shares, a process the crypto lender said would be conducted over time with the help of a broker. Genesis also intends to sell more than 11 million shares in two Grayscale Ethereum Trusts worth more than $200 million, according to a Feb. 2 court filing. Genesis’ parent, Digital Currency Group, attempted to delay the proposed sale until after the bankruptcy court decides later this month whether to approve its subsidiary’s debt repayment plan. Digital Currency Group, which opposes Genesis’ repayment plan, said its not against selling the shares but said the sales could be premature if the Lane rejects the plan. Digital Currency Group lawyer Jeffrey Saferstein said the parent company was also worried that the Grayscale shares could be unloaded too quickly, depressing prices and minimizing potential recoveries for Genesis creditors. The parent company also sought the right to consult on the Grayscale shares.
