Genius Group Pursues Issuance of $12.5 Million Perpetual Preferred Securities

Genius Group is moving forward with the issuance of $12.5 million in perpetual preferred securities, planning to allocate the funds to its Bitcoin vault and AI vault. In a statement released on August 27, the company announced its intention to issue publicly registered perpetual preferred securities utilizing a $1.2 billion shelf registration. The capital plan is linked to a target of $2 billion in total assets, with $827 million for the Bitcoin vault and $800 million for the AI vault by the end of the 2031 fiscal year. The initial issuance target is set at $12.5 million, and the securities will not convert into common stock but will provide variable monthly dividends. The raised funds will be divided between the Bitcoin vault, the AI vault, and a U.S. dollar reserve to cover approximately 18 months of preferred dividends. Genius Group has begun discussions with investment banks experienced in preferred securities and digital asset vault financing, but the final structure, dividend rate, issuance price, size, timing, and exchange listing have yet to be determined. The company plans to adopt its Bitcoin vault strategy in November 2024, dispose of its existing Bitcoin position, and resume BTC purchases in the fourth quarter of 2026. The AI vault was approved in a statement on May 27, presenting a portfolio that includes exposure to private AI companies such as SpaceX, Anthropic, and OpenAI.