Diamond Equity Research Releases Update Note on Genius Group Ltd. (NYSE: GNS)

/EIN News/ -- New York, June 09, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released an update note on Genius Group Ltd. (NYSE: GNS). The update note includes information on Genius Group Ltd.’s recent developments, management commentary, outlook, valuation update, and risks.

The update note is available below.

Genius Group June 2025 Update Note

 

Highlights from the note include:

• Genius Group Resumes Bitcoin Treasury Expansion Following Favorable Court Ruling: Genius Group has resumed its Bitcoin purchases following a favorable ruling by the U.S. Court of Appeals on May 6, 2025, which stayed a previously imposed Preliminary Injunction (PI). The company had been prevented from purchasing Bitcoin and raising funds since February 14, 2025, due to a Temporary Restraining Order (TRO) and PI issued by the United States District Court for the Southern District of New York (SDNY). As a direct result, Genius was forced to liquidate most of its Bitcoin Treasury, substantially reducing its holdings from 440 Bitcoin down to approximately 61 Bitcoin before the recent acquisitions. With the court's stay now in effect, Genius increased its Bitcoin Treasury by approximately 40% through the purchase of an additional 24.5 Bitcoin, bringing its current holdings to 85.5 Bitcoin, acquired at an average price of $99,700 per Bitcoin, totaling $8.5 million. The company reiterated its original November 2024 goal of accumulating 1,000 Bitcoin and is restructuring its operations to facilitate this recovery, including launching a Bitcoin Academy featuring prominent Bitcoin advocates such as Saifedean Ammous, author of "The Bitcoin Standard," by the end of May 2025. Simultaneously, Genius Group has escalated its legal response by filing an amended complaint under the Racketeer Influenced and Corrupt Organizations Act (RICO) in the United States District Court for the Southern District of Florida, seeking damages of over $750 million (inclusive of treble damages). This filing expands on allegations against Michael Moe and Peter Ritz (controlling officers of LZGI International, Inc.), accusing them of orchestrating fraudulent court actions, including filing false statements that triggered the damaging TRO and PI. The amended complaint introduces additional defendants, Michael Carter and John Clayton, the latter of whom faces a separate SEC lawsuit alleging securities fraud. Genius is cooperating closely with other legal actions brought by LZGI shareholders, including a class action lawsuit in New York and a derivative lawsuit in Florida, with CEO Roger Hamilton actively providing testimony. Despite these challenges, Genius emphasizes its continued commitment to Bitcoin and transparency, actively pursuing measures to recover damages and restore shareholder value from the significant disruption caused by these legal proceedings.

• Genius Group Reports Fiscal Year 2024 Financials Following Business Restructuring, Legal Roadblocks, and Strategic Recovery Efforts; Projects Growth Ahead: In FY2024, Genius Group reported audited revenue of $7.9 million, a decrease from $23.1 million in 2023. The decline was primarily due to a 57% drop in education revenue and the complete elimination of campus revenue, following the spin-off of the resort business in October 2023. Despite the revenue decline, user growth continued with 5.8 million students and users, up from 5.5 million. Operating expenses declined to $32.7 million from $48.3 million, contributing to a reduced operating loss of $30.1 million compared to $36.1 million in 2023. Total comprehensive loss widened to $25.0 million, up from $5.9 million, largely due to non-operational factors. Moreover, Genius Group strengthened its financial position, raising $55.35 million in 2024, with approximately 90% of the capital being secured through equity issuances. The capital raised has been allocated to the company’s Bitcoin Treasury Reserve Strategy, with the goal of accumulating up to 1,000 Bitcoin as part of its long-term digital asset investment plan. During the first half of 2025, the company faced significant legal restrictions related to ongoing litigation, including a court-imposed Preliminary Injunction (PI) that temporarily blocked its ability to raise funds and acquire Bitcoin. This severely impacted operations and delayed growth initiatives. In response, the company took decisive actions, repaying $20.9 million in Bitcoin-backed loans, reducing its Bitcoin holdings from 440 to 61, and relocating its treasury assets to Singapore in order to safeguard them. However, following a favorable ruling by the U.S. Court of Appeals on May 6, 2025, the PI was stayed, allowing the company to resume normal operations, including fundraising, share issuance, and Bitcoin purchases. The company is now focused on recovery and restructuring, seeking to rebuild from operational disruptions and damages incurred. Despite recent headwinds, Genius Group is committed to its long-term vision, scaling its AI-powered education platforms and Bitcoin-first strategy, with management reaffirming revenue guidance of $10 million to $13 million for 2025.

• Genius Group Cancels Rights Offering and Initiates Share Buyback Amid Legal Challenges and Valuation Opportunities: In response to prevailing market conditions and regulatory challenges, Genius Group canceled its previously announced rights offering on February 12, 2025, citing a share price significantly below the offering's subscription price. Instead, the Board called an extraordinary general meeting (EGM), subsequently held on April 7, 2025, where shareholders overwhelmingly approved (97.5%) a buyback of up to 20% of the company’s issued share capital—the maximum permitted under Singapore law. Concurrently, due to a preliminary injunction issued by the United States District Court (SDNY) restricting the issuance of shares related to employee compensation, the Board approved cash payments as an alternative, allowing affected employees to voluntarily reinvest these funds in Genius Group shares through open-market purchases.

• Valuation: Genius Group’s recent resumption of Bitcoin acquisitions signals a recommitment to its “Bitcoin-first” treasury approach following the lifting of legal restrictions. This move, coupled with the launch of its Bitcoin Academy featuring experts like Saifedean Ammous, highlights the company’s strategy to integrate cryptocurrency into its educational model. Despite a challenging year, the company concluded FY2024 with a significantly improved net asset position, reflecting successful restructuring efforts and a renewed focus on high-impact initiatives aimed at enhancing long-term shareholder value. However, the recent stock’s performance reflects the challenges and volatility associated with such a transformative strategy. Nonetheless, the company’s focus on AI and Bitcoin places it at the forefront of next-generation technology, positioning it to appeal to forward-looking investors seeking exposure to transformative digital learning models and decentralized asset strategies. We have updated our financial model to incorporate the latest financial results and have adjusted our estimates to more accurately reflect the evolving strategic initiatives. Additionally, we have revised our share count and reassessed the comparable company analysis, resulting in a valuation of $4.30 per share, contingent upon successful execution by the company.

About Genius Group Limited

Genius Group Ltd. (NYSE: GNS) is a Bitcoin treasury company with an AI powered education platform engaged in providing AI training and AI tools to 5.4 million students in over 200 countries worldwide. It aims to develop an AI-powered lifelong learning curriculum and make its educational products accessible worldwide to all age groups.

For more information, visit https://www.geniusgroup.net/

About Diamond Equity Research

Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.

For more information, visit https://www.diamondequityresearch.com.

Disclosures:

Diamond Equity Research LLC is being compensated by Genius Group Limited for producing research materials regarding Genius Group Limited, and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 06/09/2025, the issuer paid us $94,500 for our research services, which commenced on 04/16/2022. The first year was billed annually for $27,000. Thereafter, payments were made in equal installments of $13,500 for six-month semi-annual periods, with $13,500 received in April 2023 for the April to October 2023 period. A payment of $27,000 was made in May 2024 to cover two outstanding six-month terms corresponding to terms starting October 2023 and April 2024. An additional $13,500 was received in November 2024 for the October 2024 to April 2025 period, followed by another $13,500 payment received in June 2025 for the April 2025 to October 2025 coverage period. Diamond Equity Research LLC may be compensated for non-research-related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has paid us for non-research related services as of 06/09/2025 consisting of $3,000 for presenting at a virtual investment conference and $2,000 for organizing an investment dinner. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Genius Group Limited. Please review update report attached for full disclosure page.   

Contact:

Diamond Equity Research
research@diamondequityresearch.com

Attachment

• Genius Group June 2025 Update Note