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In bitcoin's worst week since 2013, BigB's $100-mn kitty considerably down

The Bitcoin-driven top-up to Bachchan's fortunes comes in the backdrop of Stampede recently listing one of its subsidiaries, Longfin Corp, on the Nasdaq exchange in the US

Press Trust of India  |  New Delhi/New York 

Kaun Banega Crorepati, Amitabh Bachchan, KBC
Amitabh Bachchan 

The crazy swings of prices added more than $100 million to megastar Amitabh Bachchan's fortunes within days, but most of it got wiped out even faster -- thanks to a small stake in a hitherto unknown firm associated with the web of There may be further such fluctuations with the craze for Bitcoins and other continuing to drive their prices and the regulatory risks remaining a big drag for the prices that saw skyrocketing to near $20,000 just a few days back before plunging back by almost half and then again recovering to $15,000 level. While lakhs of Indians are said to have taken a fancy to the and other such virtual currencies, is probably the first big name from the country to get associated with this big buzzword -- albeit indirectly and because of a small investment that is at least 3-4 years old. is a Hyderabad-based company named Capital, which describes itself as a "research driven global trade house" and a "liquidity provider and market maker" at various exchanges driving "millions of dollars trading volume everyday across the globe in nano seconds". In its regulatory filings, the company lists as an "individual non-promoter shareholder" with a small stake of 2.38 per cent at the end of last quarter. As per the records, figures on the list of shareholders (with 1 per cent or more stake) since at least June 2014, though the quantum he is holding has been changing somewhat. As on June 30, 2014, held 3.39 per cent in the company which could have been worth around Rs 9 crore at that time (going by the share price around then), while the value of his latest holding is almost half at about Rs 4.7 crore. The Bitcoin-driven top-up to Bachchan's fortunes comes in the backdrop of recently listing one of its subsidiaries, Longfin Corp, on the Nasdaq exchange in the US. Longfin got listed on Nasdaq last week with a market cap of $370 million, after it sold shares in a public offer at $2.5 apiece. now owns 37.14 per cent stake in Longfin, by virtue of which (with his 2.38 per cent stake in Stampede) becomes an indirect beneficiary in the US- listed firm. The stock suddenly saw a huge two-day surge of 2,500 per cent post announcement of an acquisition of Ziddu.com, a website that claims to specialise in providing warehouse coins, powered by the blockchain technology, to importers and exporters of commodities against their warehouse receipts. This made Longfin one of the few listed stocks with direct or indirect association with the buzz. Longfin acquired the website from Singapore-based entity named Meridian Enterprises Pte Ltd, in which 95 per cent of the equity was owned by Venkat S Meenavalli, the and chairman of and also main promoter of Longfin has entered into an asset purchase agreement with Meridian, and with related affiliates collectively represented by Hong Kong-based in exchange for 2.5 million restricted Class A common shares of the company -- and here comes another link. As per the regulatory filings made by Longdin with the US regulator SEC, the distribution of these 2.5 million shares for acquisition of is like this -- 2.15 million to Meridian, 100,000 shares to Galaxy Media, 125,000 to and another 125,000 to his son At the current stock price of $41, Longfin shares of the two Bachchans would be worth about $10.25 million. The indirect holding, owing to stake, would be worth further $30 million going by the current market cap of about $3.4 billion of Longfin. The current market cap is itself nearly 10-times of the listing level. An analysis of Longfin share price since its listing shows that it had hit a high of $142.82 each on December 18, when the market cap was over $10 billion. At that peak, the value of Longfin shares, which Bachchans got as part of deal, was over $30 million.

Besides, the indirect ownership through stake was worth about $100 million at the peak valuation. On the other hand, all these holdings were just worth about $1 million before the listing, taking into account the $2.5 apiece public offer price proposed by Longfin. Now, the direct and indirect holdings are worth an estimated $40 million -- still over $100 million below the peak. also has been seeing a sharp rally in its share price back home at the with a surge of about 50 per cent in the past one month, but its stock still remains far below the yearly peak of over Rs 30. The stock is currently trading at Rs 8.71 each after hitting upper circuit on Friday and commands a market cap of Rs 200 crore. It was $100 million (over Rs 600 crore) when Longfin filed for US listing. Incidentally, the public offer documents in March this year did not mention anything about or and Longfin described itself at that time as "an independent company" specialising in It said Longfin was a newly established company and was incorporated in 2010. It also said "LongFin has had minimal net income (approximately $5,000) with only one month operating history, and the revenues generated since its inception till end of February 2017 of approximately $300,000". As per the records, had revenue of Rs 10.22 crore in last fiscal and profit of Rs 0.03 crore. Before the IPO, held 55 per cent stake in Longfin and the remaining 45 per cent was with the Meenavalli.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, December 25 2017. 02:02 IST
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