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The injunction is gone. On August 31, the U.S. Court of Appeals for the Second Circuit lifted a preliminary injunction that had been strangling Genius Group’s ability to issue shares, raise capital, and buy Bitcoin. The case goes back to the Southern District of New York for further proceedings, but for now, the company can move.
Roger James Hamilton, Genius Group’s CEO, has been pushing a dual Bitcoin-and-AI treasury plan that’s pretty ambitious by any measure. The five-year target: $827 million in Bitcoin holdings, an $800 million AI portfolio, and $2 billion in total assets by fiscal 2031. Hamilton believes both Bitcoin and artificial intelligence are heading into a major growth phase, and he wants permanent capital positioned ahead of that move. Whether the timeline holds is another question entirely.
The Preferred Shares Blueprint
Genius isn’t improvising here. The company is basically borrowing a page from Michael Saylor’s Strategy playbook — specifically the Bitcoin-backed preferred securities model that Strategy used to grow its own market value sharply. Genius plans to issue $1.2 billion in similar preferred securities. The proceeds get split three ways: Bitcoin purchases, AI investments, and a cash reserve earmarked for preferred dividend payments.
The preferred share structure matters for a specific reason. Genius wants to raise capital without hammering ordinary shareholders with dilution. Any returns above the preferred dividend rate flow back to enhance net asset value for common shareholders. So the pitch to investors is: we fund the growth, you don’t get crushed, everyone benefits if Bitcoin and AI do what we think they’ll do.
The first capital raise under the plan is modest. The initial target is $12.5 million — roughly 1.5% of the full $827 million Bitcoin treasury goal. That’s a deliberately slow start, and probably the right call given everything Genius has been through. The final terms on the preferred financing still depend on market conditions and need board approval. No timeline locked in yet.
Bitcoin Holdings: Gone, Now Rebuilding
Genius had a Bitcoin strategy before this one. The company adopted it in 2024, built reserves up to 440 BTC, and then watched legal trouble gut the whole thing. Fundraising froze. The company liquidated its Bitcoin holdings and used the proceeds to settle $8.5 million in debt by April. That cleared the balance sheet but left Genius with zero crypto exposure heading into mid-year.
Now it wants back in. Genius plans to restart Bitcoin acquisitions in the fourth quarter, though no specific purchase amounts or timing have been disclosed. So the restart is real, but the details are murky. Unclear whether the $12.5 million first raise goes straight into Bitcoin or gets split with AI from day one.
On the balance sheet side, things look reasonably solid. As of June 30, Genius reported $106.6 million in net assets and no third-party debt. That’s not a bad position to be launching a capital raise from. It’s not a war chest, but it’s clean.
AI Investments Already Running
The AI side of the strategy is actually further along than Bitcoin right now. Genius launched its AGI Infinity Portfolio in May and made investments in June. The portfolio includes pre-IPO exposure to OpenAI, SpaceX, Anthropic, and Databricks — basically a who’s-who of high-profile private tech companies that most retail investors can’t access directly. Genius set aside an initial $100 million for AI investments across pre-IPO funds and companies it sees as positioned to benefit from the AI build-out.
That portfolio gives Genius something to point to while the Bitcoin rebuild is still in early stages. It’s real exposure, not just a slide deck. And it probably helped the company make the case to investors that the dual-strategy isn’t just talk.
The preferred financing model, if it works, lets Genius keep pushing both tracks simultaneously. Bitcoin acquisitions resume, AI investments continue, and the preferred dividend reserve keeps the new securities holders paid. It’s a balancing act, and the company is pretty upfront that market conditions will drive how fast any of it actually happens.
And the legal cloud that’s been hanging over the whole plan since before the injunction got lifted — that’s not fully resolved. The case is back in the Southern District of New York, which means there’s more to come on the legal front. Genius cleared one hurdle. There’s no guarantee the path stays clear.
Hamilton’s bet is essentially that Bitcoin and AI are the two most important capital allocation decisions a company can make right now, and that preferred securities give Genius the funding structure to pursue both without wrecking the cap table. Whether the market agrees is what the $12.5 million first raise will start to answer.
As of June 30, Genius carried $106.6 million in net assets.
Frequently Asked Questions
What did the Second Circuit court ruling mean for Genius Group?
The U.S. Court of Appeals for the Second Circuit lifted a preliminary injunction on August 31 that had blocked Genius Group from issuing shares and raising capital to buy Bitcoin, freeing the company to restart its treasury strategy.
How much Bitcoin did Genius Group hold before liquidating its reserves?
Genius Group had built up 440 BTC before legal challenges forced it to liquidate its holdings and use the proceeds to repay $8.5 million in debt by April.
Why It Matters
The lifting of the injunction allows Genius Group to pursue its ambitious dual treasury strategy, potentially positioning it at the intersection of growing Bitcoin adoption and AI innovation. This development reflects broader trends in the crypto market, where companies are increasingly looking to integrate digital assets into their financial strategies, signaling a shift in how traditional businesses might leverage blockchain technology for capital growth. The outcome of the ongoing legal proceedings could also set important precedents for similar cases in the evolving regulatory landscape surrounding cryptocurrency investments.
