Proposal: Transforming Genius Group's Bitcoin Treasury into a Powerhouse Asset

Introduction

We met at your presentation at Tropical Nomads last month. I am Nicholas Levenstein, founder of Nicholas Levenstein & Company, where we have managed market-neutral crypto hedge funds such as the Crypto Money Fund Dollar Hedge II (CMFDH II) for over six years. Our strategies have delivered a 61% annual return over 26 quarters through disciplined basis trades, options structures, and secured credit programs designed to outperform while controlling downside.

Drawing from this track record, I propose a tailored program to elevate Genius Group’s Bitcoin Treasury into a durable, income-generating asset — one that compounds BTC, produces reliable USD cash flow, and hardens the balance sheet through protective overlays.

Executive Summary

• Systematic BTC accumulation via cash-secured put selling at value entry points.
• USD income from futures term structure (contango) and conservative, over-collateralized BTC lending.
• Proven six-year framework adapted from CMFDH II to Genius Group’s risk, liquidity, and compliance needs.
• Optional call-writing overlays to enhance yield while respecting treasury-policy constraints.
• Privately negotiated, collateralized deals with automated liquidation thresholds to bound tail risk.

Element 1: Lucrative Bitcoin Acquisition via Selling Puts

Implement a cash-secured put program on BTC to acquire coins at discounted effective prices while earning option premia. Strikes and maturities are laddered; risk is bounded by fully reserved USD collateral and pre-set roll/assignment rules.

Element 2: Dollar Income Generation via Contango Trade and Secured Bitcoin Lending

Capture the futures basis where appropriate and complement with conservative, over-collateralized BTC lending to vetted counterparties. Strict haircuts, margin cadence, and auto-recall terms stabilize USD income.

Element 3: Proven Six-Year Hedge Fund Strategy for Superior Returns

Adapt CMFDH II’s risk framework — position limits, VaR bands, stress ladders, and liquidity buffers — to Genius Group’s treasury policy, targeting stable returns with capped drawdowns and high transparency.

Element 4: Enhanced Income via Selling Calls Exclusively

Use covered-call overlays on treasury BTC to monetize volatility during range-bound regimes; dynamic strike selection and coverage ratios prevent structural under-exposure to upside.

Element 5: Privately Negotiated Collateralized Deals with Auto-Liquidation Protection

Engage in bilateral structures with reputable desks using pre-agreed collateral schedules and automated liquidation triggers, minimizing gap risk while optimizing pricing versus public venues.

Next Steps & Meeting Request

I propose a working session in Bali in the next two weeks or, alternatively, any time in December. I will share a draft treasury-policy addendum (parameters, limits, KPIs) in advance so we can align quickly.

• KPIs: net BTC added per quarter; net USD income; max drawdown; liquidity coverage days.
• Guardrails: collateral haircuts; option coverage ratios; counterparty tiers; stress-test triggers.
• Reporting: weekly snapshots; monthly performance; quarterly board brief.

Contact

Nicholas Levenstein
Nicholas Levenstein & Company
nick@levenstein.net · +1 415 378 1302 (WhatsApp / Signal)

Website: levenstein.net

Sincerely,

Nicholas Levenstein