According to Genius Group, the company plans to utilize the effective $1.2 billion of shelf registration to issue publicly registered perpetual preferred securities to finance its treasury plans for the next five years. Under the current scenario, the company aims to achieve total assets of $2 billion by the fiscal year 2031, of which $827 million will be allocated to a Bitcoin treasury, $800 million to the AI investment portfolio, and the remainder will consist of operating activities, cash, and other assets.
The initial round aims to raise $12.5 million.
The company stated that the target for the initial round of preferred securities issuance is $12.5 million, aimed at investors who prefer income-producing products. This instrument is initially set up as non-convertible with monthly payments of floating dividends. The funds raised will be allocated to the Bitcoin treasury, the AI treasury, and a reserve of US dollars, which is intended to cover the preferred dividend expenses for approximately 18 months.
At present, the company has not disclosed the specific allocation ratio of the first round of funds among the three parts. The issue price, dividend level, issuance scale, whether to list on a trading platform, and the sale time have also not been finally determined. The company stated that the relevant arrangements still depend on board approval, securities regulatory requirements, and market conditions.
The goals for 2031 are divided into three parts.
The $2 billion target does not mean that all funds will be invested in Bitcoin and AI. The structure disclosed by the company is as follows: $827 million in the Bitcoin treasury, $800 million in the AI investment portfolio, with the remaining assets coming from existing businesses and cash positions.
Genius Group recently disclosed a net asset of $106.6 million, a 57% increase from the same period last year. The company stated that if the returns obtained from investing priority capital in Bitcoin and AI exceed the cost of dividends, the excess will directly increase the net assets corresponding to common shareholders; conversely, if asset prices fall or earnings are insufficient, the priority dividend obligation will still take precedence over the distribution to common shareholders.
Refer to the Strategy financing model.
The company stated that this financing approach mainly refers to the Bitcoin financing model of Strategy. Genius Group mentioned that since launching related products in January 2025, Strategy has raised over $16 billion through four series of perpetual preferred stocks.
Sustainable preferred securities do not have a fixed maturity date, and there is no requirement to repay the principal on a specific date. However, the ongoing cost of dividends and the preferential repayment arrangement mean that the related treasury assets must first cover this cost before any remaining earnings can be distributed to common shareholders.
Bitcoin purchase plan to be restarted
Before proposing the dual treasury scheme, Genius Group implemented a "Bitcoin priority" policy, with the goal of allocating at least 90% of its reserves to BTC. The company launched this policy in November 2024 and planned a first round of purchases totaling 120 million US dollars. By January 2025, the company held 420 units of BTC, which later increased to 440 units.
However, liquidity pressures later forced the company to adjust its strategy. In the first quarter of 2026, Genius Group sold its remaining bitcoins and used the funds to repay a debt of $8.5 million. The company disclosed in March of this year that it still held 84 BTC before the sale, worth approximately $5.7 million. According to the latest statements, the company plans to resume buying bitcoins.
The treasury portion began in May 2026. At that time, the board of directors approved the establishment of an investment portfolio, with an initial investment plan of up to $100 million. In June, the company completed the first round of allocations through the relevant funds, covering unlisted technology companies such as OpenAI, Anthropic, Anduril, and Databricks. It was also stated that the portfolio indirectly holds exposures to companies such as SpaceX, xAI, Figure AI, and Replit.
Additional information:The company stated that the US Securities and Exchange Commission announced on July 18, 2025, that its shelf registration took effect, but this does not imply that the regulatory authority has recognized the securities themselves or their investment value.
