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.
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. 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. Funds from the sale would be allocated among the Bitcoin treasury, the AI treasury, and a U.S. dollar reserve equal to approximately 18 months of preferred dividend payments.
Genius Group did not disclose how much of the initial proceeds each party would receive. Discussions have begun with investment banks that have experience in preferred securities and digital asset treasury financing. This approach mirrors the Bitcoin financing model used by Strategy, as seen with the Strategy raising $2 billion through MSTR sales while skipping Bitcoin purchases.
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. Genius Group calculated its net asset value at $0.62 per ordinary share. With GNS closing at $0.18 on Aug. 26, the company said its stock was trading at approximately 0.29 times book value.
Chief executive Roger James Hamilton described perpetual preferred capital as a way to fund treasury purchases without issuing more ordinary shares. Returns above the dividend cost could add to the assets attributable to ordinary investors. If the acquired assets lose value or earn less than the dividend rate, however, the preferred payment obligations would remain senior to ordinary shareholder distributions. This dual-treasury approach also aligns with the growing AI-crypto convergence, as seen with NVIDIA's record $96.2B revenue from AI demand.
Bitcoin Purchases Are 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 before a U.S. court order disrupted the program 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 a target of accumulating 1,000 BTC. Liquidations completed earlier had repaid approximately $8.5 million in obligations. The company now plans to restart Bitcoin purchases as part of its expanded treasury strategy.
