After clearing the BTC debt, the AI company plans to issue $12.5 million in preferred shares to restart the 827 million reserve

According to Woofun AI, the artificial intelligence company Genius Group (GNS.US)'s strategic focus is shifting to re-establishing Bitcoin Cash reserves and plans to restart reserves through the issuance of securities.

Details of the initial financing revealed that the company plans to issue perpetual preferred shares worth $12.5 million. Such securities are non-convertible, do not dilute common stock shares, and the risk is borne by preferred shares. Holders enjoy monthly dividends and liquidation distribution rights, which are superior to ordinary shareholders. According to data compiled by Woofun AI, the structural design was designed to avoid immediate dilution of common shares, but the specific cost of capital is yet to be determined.

Looking at long-term goals, Genius Group (GNS.US) expects reserves to reach $827 million by fiscal year 2031. The first round of funding covered only 1.51% of the target, and the remaining $8145 million gap needed to be filled through subsequent financing to reach the total reserve target. The huge gap means that a single financing cannot solve the problem, and the subsequent pressure is significant.

Closing the funding gap requires multiple issuance of preferred shares or other financing methods, and the scale far exceeds the initial amount. The size of each round depends on investors' needs. Key documents will disclose specific interest rates, prices, fundraising scale, and fund allocation plans, rather than just the upper limit.