Genius Group has cleared a legal obstacle to funding an ambitious treasury expansion plan. The US Court of Appeals for the Second Circuit vacated a preliminary injunction on August 31 that had restricted the company's ability to issue shares and raise capital. The ruling sends the underlying dispute back to the Southern District of New York.
The Singapore-based education group unveiled a five-year capital plan targeting an $827 million Bitcoin treasury and an $800 million AI portfolio, with total assets projected to reach $2 billion by fiscal 2031. Chief Executive Roger James Hamilton said the company believes Bitcoin and AI are entering new growth cycles and intends to use permanent capital to expand exposure to both assets.
Preferred Securities Model
Genius plans to issue $1.2 billion in Bitcoin-backed preferred securities, drawing on the model used by Michael Saylor's Strategy. Market value of Strategy's similar securities now exceeds $13 billion. The proceeds would fund Bitcoin purchases, AI investments, and a cash reserve covering approximately 18 months of preferred dividends.
The structure is designed to expand both treasuries without issuing additional ordinary shares. Returns above the preferred dividend rate would flow to net asset value for common shareholders. The first raise, at $12.5 million, represents about 1.5% of the Bitcoin target before allocation to AI or the dividend reserve.
Rebuilding Bitcoin, Scaling AI
Genius is pursuing its Bitcoin and AI ambitions from different starting points. The company first adopted a Bitcoin treasury strategy in 2024 and built reserves to a peak of 440 BTC, but later sold its entire Bitcoin holding in April to repay $8.5 million of debt as legal battles constrained fundraising. It now plans to restart Bitcoin purchases in the fourth quarter.
Meanwhile, AI exposure is further along. Genius launched its AGI Infinity Portfolio in May and made its first investment in June, gaining indirect pre-IPO exposure to OpenAI, Anthropic, SpaceX, Anduril, and Databricks. The company outlined an initial $100 million AI deployment across pre-IPO funds, listed infrastructure companies, and businesses expected to benefit from artificial intelligence adoption.
Genius reported $106.6 million in net assets and no third-party debt as of June 30. The final size, pricing, and timing of the preferred financing remain subject to market conditions and board approval.
