2/6/2023: Genesis, Gemini and DCG Reached Agreement in "Principle"
Gemini will contribute $100M to help Gemini Earn users with recovery
Gemini reached an agreement *in principle* with Genesis Global, DCG and other creditors today in the bankruptcy court. Gemini will also contribute $100M to help Gemini Earn users with recovery. DCG would exchange its existing $1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’s Chapter 11 plan. In other words, Genesis creditors will receive some DCG stock as part of the deal by converting the $1.1B promissory note to equity. With crypto prices up 30+% in January, I suppose the positive sentiment is back to crypto and Genesis creditors are willing to take DCG equity as part of the deal.
According to CoinTelegraph, the creditors are told that they can expect to be paid at least 80 cents on the dollar and potentially get full recovery. I suppose this is a better than expected outcome for Gemini Earn users. But I can’t believe people started to shout “Bitcoin One Million Dollars” again after the recent crypto uptick. Do people realistically think BTC will reach a market cap of $22 Trillions? The current total market cap of S&P 500 is only ~ $35B. Did people not learn any lessons in 2022?