Genius Group has proposed raising capital through perpetual preferred securities to build an $827 million Bitcoin treasury and an $800 million AI portfolio within a $2 billion total-asset target for fiscal 2031.
Key Takeaways
An initial preferred securities offering would seek $12.5 million from income-focused investors
Proceeds would be divided among Bitcoin, AI investments, and an 18-month dividend reserve
Genius Group plans to restart Bitcoin purchases after liquidating holdings to repay $8.5 million
Final offering terms remain subject to board approval, securities rules, and market conditions
Genius Group Turns to Preferred Capital
Genius Group said on Aug. 27 that it intends to use its $1.2 billion shelf registration to issue publicly registered perpetual preferred securities, placing the financing method at the center of its five-year treasury plan. The SEC declared the shelf registration effective on July 18, 2025. Such a registration allows the NYSE American-listed company to offer securities over time, but it does not represent SEC approval of the securities or their investment merits. Under the preliminary proposal, Genius Group would seek $12.5 million in its first preferred securities offering. The company expects the instruments to be non-convertible and to carry a variable dividend paid monthly. This connects to the broader corporate Bitcoin treasury trend covered in Cardone Capital's BTC purchases and Strategy's BTC sales analysis.
The $2B Target Covers Total Assets
Rather than placing $2 billion entirely into Bitcoin and AI investments, Genius Group has set separate fiscal 2031 targets of $827 million for its Bitcoin treasury and $800 million for its AI portfolio. Operating businesses, cash, and other holdings would account for the remaining assets under the $2 billion plan. The company currently reports net assets of $106.6 million, following a 57% year-over-year increase announced on Aug. 13.
Every dollar of preferred capital deployed into our Bitcoin and AI Treasury that generates returns above the preferred dividend rate flows directly to our ordinary shareholders' net asset value.
— Roger James Hamilton, CEO of Genius Group
Management has forecast that net asset value could reach between $2 and $4 per share over five years if the company executes its financing, asset-purchase, and share-buyback plans. This connects to the Metaplanet's Bitcoin moves.
Strategy Provides the Financing Model
For its proposed securities, Genius Group has taken Strategy's Bitcoin financing program as its main reference. The company said Strategy has raised more than $16 billion through four perpetual preferred stock series since introducing STRK in January 2025. The preferred securities have no fixed maturity and do not require repayment on a set date. Their dividends and senior claims still create costs that treasury assets must cover before any excess return reaches ordinary shareholders. Strategy later used Bitcoin sales to support the preferred program, selling 1,690 BTC for $108.6 million between Aug. 3 and Aug. 9, using the proceeds to repurchase about 1.15 million STRC shares.
Bitcoin Purchases Scheduled to Restart
Before developing the dual-treasury plan, Genius Group pursued a Bitcoin-first policy under which it intended to hold at least 90% of its reserves in BTC. The company adopted the policy in November 2024 and planned an initial $120 million purchase program. By January 2025, it held 420 BTC after buying another $5 million at an average price of $95,912 per coin. Holdings later reached a peak of 440 BTC. A U.S. court order disrupted the program in early 2025 by restricting the company from selling shares, raising funds or buying Bitcoin during a legal dispute. Genius Group reduced its Bitcoin holdings while seeking relief from the restrictions. After the order was lifted, the company resumed purchases in June 2025 and increased its balance to 100 BTC. Management also restored its Bitcoin-first policy.
