This Penny Stock Just Doubled Down on Plans to Become the Next MicroStrategy. Should You Buy It Now?
Genius Group Holdings (GNS), a micro-cap education technology business, made headlines by increasing its position in Bitcoin (BTCUSD) up to a maximum of 100 BTC following a favorable court ruling in May 2025. The action shows the company following in Microstrategy's (MSTR) footsteps — storing Bitcoin as a strategic treasury asset despite it being a small-cap firm with risky finances. With shares dipping 16.5% during the previous week, investors question whether Genius Group's crypto-oriented strategy is going to reignite bullish sentiment or introduce additional speculative risk.
The general market backdrop fans the debate. Bitcoin recently hit a new record above $110,000 reviving retail optimism for crypto-related stocks. But while the S&P 500 Index ($SPX) trades just shy of record levels, speculative small-cap stocks such as GNS have fared poorly in comparison. For Genius Group specifically, this appears to be at least partially due to regulatory setbacks.
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Genius Group (GNS) is a Singapore-based edtech company that offers AI-powered, Bitcoin-oriented education platforms in its Genius City format and chain of Genius Schools. With a presence in over 100 countries and 5.8 million students, it is focused on customized learning and worker upskilling. Its market cap is a paltry $25 million, making it vulnerable to volatility.
Shares have declined more than 86% in the past 12 months, dramatically underperforming the S&P 500 Index. Year to date, GNS is down over 48%, recently trading around $0.35 — a far cry from its 52-week high of $3.20. Despite recent BTC purchases, the stock has yet to respond positively, possibly due to lingering legal overhangs and questions about its core business execution.
From a valuation standpoint, GNS is trading at a 3.3x price-sales ratio and a paltry 0.31x price-book value. Its total loss of $25 million on a mere $7.9 million in revenue reveals challenges with its operating model. Even following a 303% surge in net asset value (NAV) to $79.4 million, its profit margins are critically negative.
Genius Group announced full-year 2024 results in April 2025, reporting $7.9 million in revenue, down sharply from $23.1 million in 2023 as a result of a botched asset acquisition and legal restructuring. The company was able to narrow its operating loss by a third to just $30.1 million from $36.1 million in the previous year. The adjusted EBITDA loss narrowed slightly to $13 million from $13.2 million, while NAV strengthened from just $19.7 million all the way up to $79.4 million, fueled by crypto gains and asset realignment.
Pre-2025, Genius forecast sales of $10 million to $13 million with positive EBITDA of $200,000 to $1 million, a first-ever profit forecast in company history. That is all conditional, however, on a court decision. The company is seeking damages over $700 million for alleged fraud and extortion from a former deal partner.
In defending its crypto business, Genius transferred all U.S.-held Bitcoin back to Singapore and returned related loans, making it debt-free. The management reported that the company was compelled to sell off its Bitcoin treasury in order to satisfy a court-ordered preliminary injunction, but resumed buying in May after a successful appeal in the U.S. It currently owns 100 BTC, which is equivalent to approximately $10 million at an average cost of $100,600 per coin.
No analysts tracked by Barchart provide ratings on Genius Group stock. While GNS is a popular retail trading name due to its Bitcoin-oriented direction, its small corporate size makes it unlikely to receive much analyst attention.
Potential investors should focus more on company fundamentals, the Bitcoin market, and progress in the mentioned litigation.
On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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