The Second Circuit cleared Genius Group to resume share issuance, capital raising, and Bitcoin purchases after vacating a preliminary injunction that had blocked the education firm's $1.2 billion dual Bitcoin and AI treasury strategy.
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Second Circuit vacates injunction blocking Genius Group's $1.2 billion Bitcoin plan
The Second Circuit vacated an injunction that had barred Genius Group from issuing shares, raising capital, and buying Bitcoin, freeing the NYSE American-listed education firm to execute its $1.2 billion treasury plan.
The summary order, filed Aug. 31, terminates the preliminary injunction granted by the Southern District of New York on March 13, 2025, in favor of LZG International, Genius Group said in a statement Tuesday. The ruling ends an 18-month legal battle in which the company said the injunction was sought on inaccurate statements designed to obstruct its corporate strategy.
The decision follows the ICC arbitration between Genius Group and LZG that concluded April 16, 2026, with the arbitrator finding entirely in the company's favor. Genius Group is entitled to the return of 7,387,374 shares of its common stock, monetary damages of $6,595,180, and legal fees and expenses of $1,375,988.53, according to the final award.
With the injunction vacated, Genius Group can now fully deploy its board-approved capital plan, which pairs Bitcoin accumulation with its AI-powered education business serving more than 6 million users across 100 countries. The case has been remanded to the district court for further proceedings to maintain the status quo pending final resolution of the underlying action between Genius and LZG.
The ruling removes the last legal obstacle to Genius Group's treasury strategy, which follows a playbook popularized by Strategy, the largest corporate Bitcoin holder, and adopted by firms including Metaplanet and Semler Scientific. Genius Group's approach differs by pairing Bitcoin accumulation with its AI education platform, which operates through its Genius City model and online digital marketplace.
The injunction had been stayed by the Second Circuit on May 7, 2025, allowing the company to operate in the interim, but the formal vacatur removes the legal uncertainty that had constrained its capital-raising activities. The company's ability to issue new shares carries dilution risk for existing holders, a trade-off the market will weigh as Genius Group executes its plan.
The district court will now handle further proceedings to maintain the status quo while the underlying action between Genius and LZG is resolved. Genius Group said it expects to move forward on multiple fronts with the injunction vacated, including executing its capital plan and treasury strategy without legal restriction.
This article is for informational purposes only and does not constitute investment advice.
