Genius Group Limited (GNS), a trailblazer in AI-powered education and acceleration, has announced it is pivoting towards a “Bitcoin-first” strategy, channeling 90% of current and future reserves into Bitcoin. Along with a commitment to invest an ambitious $120 million in Bitcoin, the company is championing access to Bitcoin knowledge through its ‘Web3 Wealth Renaissance’ education series. The company is bolstering its balance sheet and shareholder returns by strategically using a $150 million ATM funding facility.
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As it navigates market challenges, the company is moving forward with the Genius Cities Network and global AI education model through the recent launch of GeniusGroup.AI. This platform fosters exponential learning ecosystems while harnessing local technology.
The company has experienced some disarray in the past year, including the ouster of its CEO and a plummeting share price, as the stock lost over 86% of its value. While this new move may spark the necessary turnaround, the proposed shift is still in its initial stages, and investors might want to hold off and observe initial results.
Genius Group Is Pursuing Ambitious Plans
Genius Group offers entrepreneurial education and business development resources. The company operates in two major divisions: the Education and Campus segments. The educational curriculum provided by Genius Group is comprehensive and designed to cater to the needs of students seeking entrepreneurial knowledge and faculty members seeking advancement.
The company has announced a global “Bitcoin-first” strategy after restructuring its Board to include blockchain and Web3 experts. It plans to commit 90% or more of its current and future reserves to Bitcoin and initiate a $120 million investment in Bitcoin through its $150 million ATM. It will also launch a Web3 Wealth Renaissance education series to support students’ understanding of Bitcoin and blockchain and will accept Bitcoin payments on its Edtech platform. The company believes this strategy will benefit its shareholders and strengthen its balance sheet.
In other news, the company recently launched GeniusGroup.AI to drive the growth of its Genius Cities Network and global AI Education model. The platform will provide AI training, tools, and talent to connect “Genius Cities” worldwide into exponential learning ecosystems. Key features of GeniusGroup.AI include a suite of AI Avatars, instant access to Alan Turing AI, daily AI news updates, and a global calendar of Genius Events. This comes as Genius Group expands its Genius City model to several new locations to launch 100 Genius Cities globally.
Genius Group’s Previous Financial Results
Genius Group’s latest financial disclosures are for the Fiscal year 2023. Revenue rose by 27%, from $18.2 million in 2022 to $23.1 million. There was a striking increase in the pro forma 2023 revenue, which shot up 150% to $70.4 million from $28.1 million the previous year. This significant jump includes revenue from the FatBrain AI acquisition. During the same period, Genius Group also reported a 24% growth in its student base and users, reaching a total of 5.5 million.
The company reported a gross profit of $11.9 million, increasing from $8.6 million in 2022. Moreover, the net loss after tax substantially decreased by 90%, dropping from $56.0 million in 2022 to $5.7 million. On a pro forma basis, the net loss after tax was further minimized to $0.8 million.
For the 2024 Fiscal year, the Genius Group has projected a minimum pro forma revenue of $105 million, a 50% increase from 2023’s pro forma revenue of $70.4 million.
Is GNS a Buy?
The stock has been on an extended downtrend, cascading down 99% since the shares first started trading in April 2022. While it trades near the bottom of its 52-week price range of $0.51 – $9.49, recent news has the stock showing signs of life. It shows positive price momentum as it trades above the 20-day (0.75) and 50-day (0.88) moving averages.
Final Word on GNS
At this stage, long-term investors might want to hold off and let the dust settle on the company’s strategic changes. For now, the stock is a highly speculative venture best left to risk seekers willing to embrace the lotto-ticket nature of this investment.
