Trade 

Pre-petition Capital Structure

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Proposed Treatment

On May 31, 2024, the bankruptcy court confirmed the Genesis debtors' plan of reorganization. The plan went effective on August 2, 2024. The plan treatment involves distributing a combination of cash, digital assets, and Grayscale Bitcoin and Ethereum Trust shares. Creditors with allowed general unsecured claims will receive a pro rata Share of these assets, with the value of their claims converted into USD or stablecoins. Priority and secured claims have been paid in full, while subordinated and government penalty claims are unlikely to receive any recovery. The disclosure statement outlines specific distribution principles that are designed to maximize in-kind recovery for claimants with different underlying crypto or fiat assets.

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Estimated Recovery

The Debtor’s disclosure statement projects the following recovery for the claims of the different debtors. The Distribution Record Date for the plane was June 14, 2024. Currently the initial, post-effective distribution of $4B has been paid to creditors and such distributions were paid in kind according to the percentages below.

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The plan retained $70M, consisting of $26M in BTC, $13M in ETH, and $31M in USD for a litigation fund to pursue causes of action.  Expressly identified retained causes of action include: claims against third-parties, claims against DCG entities and related parties, claims related to insurance policies, claims related to taxes and tax refunds, claims related to setoff and recoupment, AR/AP claims, contract and lease claims, and any other litigation claims.

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Stub Claims

Creditors holding claims denominated in USD, stablecoins and certain altcoins have already received 100% of their claims and minimal additional value is expected to be distributed to these holders, if at all. Creditors holding claims denominated in BTC, ETH and SOL received more than the Petition Date value of their claims, but far less than the current market value of their crypto-denominated claims. These creditors stand to receive the vast majority of future distributions. Uncertainty as to the timing and extent of these future distributions remains and many of these creditors are now seeking to sell the right to these future distributions ("stub claims") to third party claim buyers.