You asked how the recent GTCH deals will be booked. Based on GTCH's prior quarterly reports, the TREN deal, which appears to be a fait accompli, should be reflected at the current market value of the securities held. As I understand it, GTCG, through a subsidiary, gets 50% of the shares from the TREN deal. That would be 13,000,000 shares. TREN shares today (after an 8-K announcing new CEO hire whose job is to get company up-listed) closed at $1.55. That would put the current market value of GTCH's stake at $20,150,000. That is how the shares would be reflected on a consolidated balance sheet, I believe, if the balance sheet were prepared after the close of business today. If TREN's goal of up-listing to NASDAQ succeeds, GTCH's stake could be valued at $39,000,000+, as NASDAQ generally requires a $3.00 minimum share price for listing (though I suppose TREN could circumvent this with a 3:1 RS split). But given how few TREN shares are currently issued, a RS split seems unlikely as the company would be ridiculously thinly-traded.
GTCH is currently restricted from selling its TREN shares for a period. So, the dollar values you see for TREN--which could easily fluctuate down as well as up--represent potential dollar value. Not realizable yet as cash. But I think GTCH could assign/ "spend" some of these TREN shares (subject to time restrictions for trading) to debt holders to pay down debt. That's what I'd do if I were king.
Earlier GTCH filings reveal that its 50% stake in GBT Tokenize is pledged to a creditor (to secure another debt); this might ultimately deprive GTCH of some, but hopefully not all, of the value of the TREN shares.
GTCH's current market value at $0.0013/share x 2,930,000,000 issued shares is $3,809,000. Quite a contrast to the value of the TREN shares. Of course, GTCH also has $20M of debt--some of which is going away, however, as debt holders convert to equity.
I've had a position in GTCH for a couple of years. In 2021 and 2022 I was aghast at the seeming strangeness and extreme dilution of some GTCH deals (now largely written off or unwound). But, because of the deals being made in 2023--commercialization of IP without further bizarre dilution--I suddenly have hope.
AI
