THE BITCOIN BANKRUPTCY THAT WASN’T
Good morning, Term Sheet readers. Jen Wieczner filling in for Polina today, to bring you the very twisty saga of a Bitcoin mystery. Find me on Twitter @jenwieczner or email me at [email protected].
About a month ago, I was in Tokyo, right as the cherry blossoms were starting to bloom. I was there to find out why, just a little more than four years after Mt. Gox (then the world’s largest Bitcoin exchange) suddenly collapsed in 2014—saying it had lost all of its 850,000 Bitcoins—nothing about the case has gone as expected.
A week after filing for bankruptcy protection, Mt. Gox’s CEO Mark Karpelès had mysteriously found 200,000 Bitcoins—a lucky stroke that would change everything for Mt. Gox creditors. That’s because, even though Mt. Gox only recovered less than a quarter of its lost Bitcoins (the rest were stolen in a hack), the Bitcoin price has risen more than 17x between the time Mt. Gox entered liquidation and today.
In other words, Mt. Gox is no longer insolvent.
I tell the full story of how Karpelès found the Bitcoins (details he revealed for the first time in our conversations) and the stranger-than-fiction implications of Bitcoin’s price surge in my new feature in Fortune, “Mt. Gox and the Surprising Redemption of Bitcoin’s Biggest Villain.”
But those of you familiar with distressed situation investing will know that in bankruptcy, assets pretty much never go up 17x. (If you know of another instance this has happened, please let me know.) And if that just made your opportunity radar alarms go off, you’re not alone. There are still some legal kinks to work out, but if all goes as creditors expect, “It’s a bonanza, and you make eight, nine, 10 times your money,” Thomas Braziel, managing partner of New York-based hedge fund B.E. Capital Management, told me. He’s been buying up creditors’ claims at 80 cents on the dollar in hopes of just such a windfall.
Of course, for creditors, the real hero of the story is actually a private equity investor, who for months was just known as the Mt. Gox “mystery creditor.” After the Mt. Gox bankruptcy trustee announced that under Japan’s bankruptcy code, creditors were not entitled to Bitcoin’s massive price appreciation in their claims, Richard Folsom took it upon himself to change that. Folsom, an American who worked for Bain & Co. in Tokyo after college before founding one of the first private equity firms in Japan, hired the biggest Japanese law firm and petitioned the court to change the bankruptcy to a so-called “civil rehabilitation.” If successful, it would set a new precedent in Japan. Read more about it here.
LESSONS FROM A BANKRUPT CEO
Among many other insights, former Mt. Gox CEO Mark Karpelès revealed in our interview his failure to anticipate how the growth of Bitcoin would affect his company. “Bitcoin right now is, I believe, doomed,” he told me. “Its original promise of being the future of currency is clearly out of reach.”
But it’s not that he has recently lost faith (what with all his Mt. Gox legal problems, including an ongoing criminal trial). “Actually I was never so very optimistic about this,” says Karpelès, who is French. “Maybe that was an error of me, because I couldn’t see Bitcoin growing that fast at the beginning of Mt. Gox.”
These days, Karpeles is less interested in Bitcoin than about solving the same problem pretty much everybody else in tech is worried about—Facebook’s data leakage problems and “advertising-driven overreach on people’s privacy.” That’s part of the reason he just landed a new job: CTO of a company called London Trust Media.
If you like reading about the world of cryptofinance, please sign up for our newsletter The Ledger—coming soon in just a couple of weeks.
Again, you can DM me on Twitter @jenwieczner or email me at [email protected].
Please send Term Sheet deals to [email protected].
THE LATEST FROM FORTUNE…
• Mt. Gox and the Return of Bitcoin’s Biggest Villain (by Jen Wieczner)
• Here Are the World’s 10 Greatest Leaders (by Fortune Editors)
• Intel Is Killing Its Google Glass-Like Project, Vaunt (by David Meyer)
• Tesla Under OSHA Investigation for Worker Safety as Elon Musk Ramps Up Model 3 Production (by David Meyer)
ZTE postpones earnings due to U.S. export ban. Uber selects VMware’s Rowe as top CFO candidate. Blockchain and the shipping industry. Facebook goes for its own chip. Providers dominated healthcare private equity deals in 2017. P&G to acquire German Merck’s consumer health business for about $4.21 billion. Qualcomm’s $44 billion acquisition of NXP problematic, says China. Why parents like Fortnite.
• BenevolentAI, a U.K.-based pharmaceutical AI firm, raised $115 million funding. Woodford Investment Management was an investor.
• Wunder Capital, a Boulder, Colo.-based solar investing firm, raised $112 million in Series B funding. Cyrus Capital Partners led the round.
• RealSelf, a Seattle-based, the plastic surgery search platform, raised $40 million in its first round of funding. Elephant Partners led the round and was joined by investors including Capital World Investors.
• Redaptive, a San Francisco-based provider of commercial Efficiency-as-a-Service (EaaS), raised $20 million in funding. CBRE, led the round and was joined by investors including ENGIE New Ventures, and Linse Capital.
• RubiconMD, a New York-based healthcare platform, raised $13.8 million in Series B funding. HLM Venture Partners and Optum Ventures led the round and was joined by investors including Centene Corporation and Blue Ivy Ventures.
• LawGeex, a Tel Aviv-based legal contract procession automation firm, raised $12 million in funding. Aleph led the round.
• BeBop Sensors, a Berkeley, Calif.-based smart fabric sensor maker, raised more than $10 million in a Series A funding. Bullpen Capital led the round.
• Simplr, a San Francisco-based customer service solutions firm, raised $8 million from Asurion and private equity backers.
• Open Cosmos, a U.K.-based satellite firm, raised $7 million in Series A funding. BGF Ventures led the round and was joined by investors including LocalGlobe, Entrepreneur First, TransferWise co-founder Taavet Hinrikus, and Microsoft’s former head of corporate strategy, Charlie Songhurst. Read more.
• RootsRated, a Chattanooga, Tenn.-based outdoor experience finder firm, raised $6.5 million in funding. TechOperators led the round and was joined by investors including the Chattanooga Renaissance Fund and The Lighthouse Fund.
• Rare Bits, a marketplace for crypto goods, raised $6 million in funding. Spark Capital, First Round Capital, Craft Ventures, SVAngel, Neil Mehta, Emmett Shear, Aditya Agarwal, Ruchi Sangvhi, Justin Kan, and Avichal Garg were the investors.
• GraphWear Technologies, a San Francisco-based makers of a graphene-based sensor, raised $4.2 million in Series A funding. Bio Innovation Capital and Mission Bay Capital led the round. Read more.
• Cerebro Capital, a Baltimore, M.D.-based online platform corporate credit facilities sourcing and management firm, raised $2 million in Series A funding. Sterling Partners and the State of Maryland’s TEDCO fund led the round.
• Pula, a Swiss startup providing insurance to farmers in Africa and South Asia, closed a seed funding. Accion Venture Lab led the round and was joined by investors including Omidyar Network, Mulago Foundation, Choiseul Africa Capital, Mercy Corps’ Social Venture Fund, and several angel investors.
PRIVATE EQUITY DEALS
• Athora Holding, a portfolio company of Apollo Global Management, acquired Generali Belgium SA, a Belgium-based insurance provider, for about 540 million euro ($669 million).
• Celestica, a portfolio company of RFE Investment Partners, acquired Atrenne Integrated Solutions, a New Hope, Minn.-based ruggedized electromechanical solutions maker, for $139 million. Financial terms weren’t disclosed.
• Twin Brook Capital Partners was sole lead arranger of $131 million of financing to back an add-on acquisition by and recapitalization of The Wicks Group-backed Gladson, a Lisle, Ill.-based digital content firm.
• Bregal Partners recapitalized Embassy Management, a Washington-based multi-state provider of community-based residential and behavioral services to adults and children. Twin Brook Capital Partners served as sole lead arranger of $50 million of financing to back the recapitalization.
• BlackRock agreed to acquire Tennenbaum Capital Partners, a New York-based private credit investor.
• A group of investors led by Stellex Capital Management acquired Fenix Parts (OTCMKTS:FENX), a Westchester, Ill.-based reseller of OEM automotive products. Financial terms weren’t disclosed.
• KJM Capital recapitalized Professional Pipe, a N.C.-based piping contractor. Financial terms weren’t disclosed.
•Water Street Healthcare Partners and JLL Partner acquired Triplefin, a Cincinnati, O.H.-based patient support firm. Financial terms weren’t disclosed.
• CannaRoyalty Corp. (CSE: CRZ) acquired FloraCal Farms a Sonoma County, Calif.-based cannabis producer for $4 million in cash and 7 million CannaRoyalty share.
•Bluegreen Vacations Corporation (NYSE: BXG), a Boca Raton, Fla.-based vacation ownership company, today acquired The Éilan Hotel and Spa in San Antonio, Texas for approximately $34.3 million.
• Barometric, a New York-based MRC-accredited provider of cross-environment tracking and measurement solution, spun out of AdTheorent. Financial terms weren’t disclosed.
• Digital Remedy acquired CrowdHere, a New York-based curated collective of new media filmmaker. Financial terms weren’t disclosed.
• GrafTech International, a Brooklyn Heights, Ohio-based firm making graphite electrode products, raised $525 million in an IPO of 35 million shares priced at $15 apiece, below its range. The firm posted sales of $550.7 million and income of $8 million in 2017. J.P. Morgan, Credit Suisse, Citi, RBC Capital Markets, HSBC Corp. and BMO Capital Markets are joint bookrunners in the deal. It plans to list on the NYSE as “EAF.”
• Vrio, a Dallas-based satellite TV service spinning out of AT&T, postponed its IPO to raise $248 million in an offering of 15 million shares priced between $16 to $17. Goldman Sachs, J.P. Morgan, Citi, Morgan Stanley, BofA Merrill Lynch, Barclays, BTG Pactual, Credit Suisse, Deutsche Bank, Itau BBA, Santander, Banco do Brasil Securities LLC, BNP Paribas, and Bradesco BBI are underwriters. It planned to list on the NYSE as “VRIO.”
• MorphoSys, a German firm developing lymphoma therapies, raised $208 million in an IPO of 8.3 million ADSs priced at $25.04. Goldman Sachs, J.P. Morgan, and Leerink Partners are joint bookrunners in the deal. The firm has a $3 billion market cap on the Frankfurt Stock Exchange. It plans to list on the Nasdaq as “MOR.”
• Surface Oncology, a Cambridge, Mass.-based cancer antibody developer, raised $108 million in an IPO of 7.2 million shares priced at $15, the high end of its range. The firm posted $45.4 million in loss on $13 million in revenue for 2017. Atlas Ventures (23%), F-Prime Capital Partners (10%), Lilly Ventures Management Group (16%), Novartis (16%), and New Enterprises Associates (16%) back the firm. Goldman Sachs, Cowen & Company and Evercore ISI are joint bookrunners in the deal. The firm plans to list on the Nasdaq as “SURF.”
• Ward Energy Partners, a Fort Collins, Colo.-based energy firm, sold assets located in Adams and Weld Counties in Colorado to an undisclosed buyer.
• VizExplorer, a San Diego, Calif.-based analytics platform for the casino industry, raised an undisclosed amount of funding from Morgan Stanley Expansion Capital. Endeavor previously held the firm and will continue to have a minority investment in the company.
FIRMS + FUNDS
• BIP Capital promoted Mark Flickinger to chief operating officer and Todd Knudsen to chief financial officer.
• Cerberus Capital Management appointed Matt Zames as President; Frank Bruno has been promoted to Co-Chief Executive Officer; and Lee Millstein was promoted to President of the Firm’s international business.
• Amherst Pierpont Securities hired Steven Abrahams as Senior Managing Director and Head of Strategy.
• Antares Capital appointed Timothy Lyne as senior managing director and co-head of Sponsor Coverage and Vivek Mathew as head of Asset Management and funding.
• Norwest Equity Partners hired Tony Armand as an operating partner. Armand was previously CEO of United Sports Brands.
SHARE TODAY’S TERM SHEET
View this email in your browser.
Lucinda Shen produced today’s Term Sheet. Send deal announcements to Polina here and IPO news to Lucinda here.
2018年4月19日Jen Wieczner 比特币的破产不是早上好，学期表读者。Jen Wieczner今天为Purina灌醉，给你带来了一个非常神秘的比特币传奇。在Twitter @ JeWieCZNER上找到我，或者在JeN.WiCZNEL网站上给我发电子邮件。大约一个月前，我在东京，正当樱花开始盛开的时候。我在那里找到原因，仅仅在Go.Gox（当时世界上最大的比特币交易所）之后的4年多一点，在2014年突然崩溃，说它已经失去了85万比特硬币的全部，没有什么像预期的那样消失了。申请破产保护的一周后，Gox的首席执行官Mark Karpel•艾斯神秘地发现了20万个比特币，这是幸运的一击，这将改变Gox债权人的一切。这是因为，尽管GOX只收回了不到四分之一的丢失的Bitcoins（其余的是在黑客中被盗），比特币的价格在GOX进入清算期和今天的时候已经上升了17%以上。换言之，Go.Gox不再破产。我讲述了卡佩尔是如何找到比特币的（他在我们的谈话中首次透露的细节）和《财富》中新币的比特币价格飙升的奇幻人生含义，“M.Gox和比特币最大的恶棍惊人的救赎”。但那些熟悉困境投资的人会知道，在破产中，资产几乎永远不会上升到17X。（如果你知道另一个例子发生了，请让我知道。）如果这只是让你的机会，雷达警报消失，你就不是。独自一人。还有一些法律上的分歧需要解决，但如果一切都像债权人所期望的那样，“这是一笔财富，而你赚8、9、10倍的钱，”纽约对冲基金B.E.Capital Management的合伙人Thomas Braziel告诉我。他一直在以美元的名义买下债权人的债权，希望能有这么大的意外收获。当然，对于债权人来说，故事中真正的英雄实际上是一个私人股本投资者，几个月来，他被称为M.Gox“神秘债权人”。在M.Gox破产管理人宣布，在日本破产法下，债权人无权获得比特币的大规模公关。在他们宣称的冰升值中，Richard Folsom不惜一切代价改变了这一点。Folsom，一位在Bain大学毕业后在东京工作的美国人，在创办日本第一家私人股本公司之前，雇佣了最大的日本法律公司，并请求法院将破产改为所谓的“民事康复”。日本的先例。在这里阅读更多。一位破产的首席执行官在许多其他见解中吸取的教训，前G.Gox首席执行官Mark Karpel·S在我们的采访中透露，他没有预料到比特币的增长将如何影响他的公司。“我认为，比特币现在是注定的，”他告诉我。“它对货币未来的最初承诺显然是遥不可及的。”但这并不是说他最近失去了信心（他所有的GOX GOX法律问题，包括正在进行的刑事审判）。“事实上，我从来没有这么乐观过，”卡佩尔说，他是法国人。“也许这是我的一个错误，因为我看不出比特币在Gox Gox开始时增长的如此快。”这些天，卡珀利斯对比特币的兴趣比解决相同问题的兴趣要小得多，科技界的其他人都担心脸谱网。数据泄露问题和“广告驱使人们的隐私过度”这就是他刚刚找到一份新工作的部分原因：一家名叫伦敦信托传媒公司的CTO。时事通讯提醒如果你喜欢阅读关于密码的世界，请注册我们的时事通讯。再一次，你可以在Twitter @ JeNeWiZZNER上给我发短信或者发邮件给我。请把期限表交易给Luxna.申@财富网。广告财富的最新…Gox与比特币的回归最大的恶棍（Jen Wieczner）和公牛；这里是世界上10大领导人（财富编辑）和公牛；英特尔正在杀死它的谷歌玻璃类项目，Vaunt（由David Meyer）和牛；特斯拉在OSHA的入侵。工人安全的调查，作为伊隆麝香斜坡模型3生产（由David Meyer）WPA603015QTED其他地方中兴推迟收入由于美国出口禁令。Uber选择VMware的Rowe作为首席CFO候选者。链链和航运业。脸谱网选择自己的芯片。在2017年，供应商主导了医疗保健私人股本交易。宝洁公司收购德国MelkWPAP60300 7QTE消费者健康业务约42.1亿美元。高通的$44亿美元收购恩智浦的问题，说中国。为什么父母喜欢福斯特？风险交易BoeMeNeTai，一家总部位于英国的制药人工智能公司，募集了115美元的工厂。离子资金。伍德福德投资管理公司是一名投资者。总部位于Colo.的Boulder太阳能投资公司WordCapital筹集了1.12亿美元的B系列资金。赛勒斯资本合伙人领导了这一轮。总部位于西雅图的整形外科搜索平台RealSub公司在首轮融资中筹集了4千万美元。大象合作伙伴领导了这一回合，并加入了包括资本世界投资者在内的投资者。总部位于三藩的商业效率服务提供商（EAAS）筹集了两千万美元的资金。CBRE引领了这一轮，并加入了包括EngEngEngEngEngvices和Leun-Capital的投资者。纽约的医疗保健平台RuBixMD筹集了3.8亿美元的B系列资金。HLM风险合作伙伴和OptOM创投引领了这一轮，并加入了包括CENCENE公司和蓝常春藤风险投资公司在内的投资者。特拉维夫法律合同处理公司LaGeEX公司筹集了1200万美元的资金。阿尔弗斯领导了这一回合。BBoP传感器，伯克利，Calif.的智能织物传感器制造商，筹集了超过一亿美元的A系列资金。牛棚资本引领了这一轮。一家总部位于三藩的客户服务解决方案公司Simulr从Asuron和私募股权支持者那里筹集了8百万美元。总部位于英国的卫星公司CopyOsMOS公司筹集了700万美元的A系列资金。BGF创投引领了这一轮，并加入了包括LoopGrand、企业家第一、Twitter联合创始人塔维特·希里库斯和微软公司战略负责人Charlie Songhurst的投资者。多读。Boo.RooStRATE是一家总部位于Tenn.的Chattanooga户外体验公司，筹集了650万美元的资金。技术运营商引领了这一轮，投资者也加入了进来。
SPONSORED FINANCIAL CONTENT
You May Like