SINGAPORE - Genius Group Limited (NYSE American: GNS), an education company with a focus on AI and Bitcoin, has launched a rights offering as detailed in its recently filed Prospectus Supplement. The company, currently valued at $42.84 million with shares trading at $0.63, announced that it intends to allocate all net proceeds from the offering towards the purchase of Bitcoin to enhance its Bitcoin Treasury.
The rights offering, which is now open to shareholders, aims to strengthen the company's investment in the cryptocurrency as part of its Bitcoin Treasury Strategy. The strategy aligns with Genius Group's identity as a Bitcoin-first business and reflects its commitment to integrating Bitcoin into its operational framework. According to InvestingPro analysis, the company maintains a moderate debt level with a current ratio of 2.52, though it's experiencing significant cash burn in recent quarters.
Genius Group's CEO, Roger Hamilton, will lead an investor call and webcast today at 6.00pm Eastern Time to discuss the rights issue, the company's approach to Bitcoin, and its outlook for 2025. Interested parties can access the live webcast and subsequent replay through the company's investor relations website.
The education group, serving over 5.4 million users across more than 100 countries, leverages AI to deliver educational and acceleration solutions aimed at preparing individuals for the future of work. Genius Group's offerings include a variety of AI training, tools, and talent through its Genius City model and online digital marketplace. Recent financial data shows revenue declined by 34.48% in the last twelve months, with EBITDA at -$18.41M. Investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers 14+ additional key metrics and expert insights for GNS.
The company's focus on Bitcoin and AI reflects a broader trend in the technology and education sectors, where companies are increasingly looking to integrate digital assets and advanced technologies into their business models.
This move by Genius Group is based on the information provided in their press release statement. It represents a significant step for the company as it continues to explore the intersection of education, AI, and cryptocurrency. While InvestingPro analysis suggests the stock is currently undervalued, investors should note that forward-looking statements included in the press release are subject to risks and uncertainties, with the company's next earnings report expected on February 26, 2025.
In other recent news, Genius Group Limited has made significant strides in its Bitcoin-first strategy, with a series of acquisitions expanding its Bitcoin Treasury to $40 million. The company's aggressive investment strategy is primarily funded through its reserves, At-the-Market offerings, and debt financing, including a $19 million loan from Arch Lending. Despite a declining revenue of 34.48% in the last twelve months, Genius Group reported a 130% increase in revenue for the first half of 2024, reaching $20.7 million.
The company also made strategic acquisitions, such as XD Academy, a learning platform specializing in Bitcoin and Blockchain education, aligning with its focus on integrating Bitcoin into its educational initiatives. The reshuffling of its board and management team, along with the appointment of an Interim CFO, are other recent developments.
These developments reflect Genius Group's commitment to its Bitcoin-first approach and its constant efforts to strengthen its financial performance. The company's CEO, Roger Hamilton, demonstrated confidence in the company's future by acquiring 500,000 ordinary shares. These are recent developments for Genius Group Limited.
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