Bachchans ride Bitcoin wave; $250,000 investment in Ziddu swells to $17.5mn
Of all the Bollywood had ever imagined, Big B has a stock of cryptocurrency that he invested a couple of years back. The Bachchan family has a stock investment that has surged from $250,000 to $17.5 million because of the cryptocurrency mania in the Wall Street and numerous financial markets across the world.
As part of their personal investment strategy, Senior and Junior Bachchan invested $250,000 in a Singapore firm, Meridian Tech Pte, which was founded by Venkata Srinivas Meenavalli.
Meridian was not known to many outside as it happens with small technology companies. But this took a sharp turn last week when Ziddu.com, Meridian’s main asset, was acquired by an overseas company called LongFin Corp that is backed by Meenavalli. This has happened just after the listing of LongFin Corp on NASDAQ.
Ziddu was a startup and provided services like cloud storage and e- distribution when Bachchans invested in Meridian. It was done under RBI authorised Liberalised Remittance Scheme or LRS.
After the acquisition in December, the company is described as a Blockchain technology empowered solutions provider that provides microfinance across continents using cryptocurrencies. Because of the usage of the words like blockchain and cryptocurrencies, the stock of the LongFin rose more than 1000% in one week after increasing over 2500% on Friday after the deal was announced to acquire Ziddu.com.
When asked, Meenavalli told ET in a text message, “In lieu of their holding in Meridian Tech, Bachchans received 250,000 shares of LongFin following the asset purchase.” Bachchan’s holding in LongFin is valued at approximately $17.5 million or Rs 114 crore according to the exchange rate according to the stock price of $70 on Monday.
When asked to explain the evaluation, Meenavalli told, “It’s crazy… the global euphoria over Blockchain is sweeping the world…no intrinsic value can be attached.”
As stated in the LongFin press release, Ziddu provides micro- lending service against warehouse receipts. Behind all the excitement and hysteria are Ziddu Warehouse Coin and the company says that it is a small contract enabling importers and experts to use Ziddu coins, which are somehow related to Bitcoin and Ethereum digital currency.
According to LongFin, the importers and exporters convert the Ziddu coins into Bitcoin and Ethereum and use them for their needs. According to the release, LongFin Corp is “an independent finance and technology company that specialises in structured trade finance solutions and physical commodities finance solutions for finance houses and trading platforms for North America, South America and Africa regions.”
But once the bitcoin bubble bursts, the excitement around the newly listed company might die even if the stated objectives are met by LongFin. No one can explain the recent surge in the Bitcoin and other cryptocurrencies rates. The digital currency was originated after the financial crisis in 2008 and also during the distrust of other currencies that were devalued by central banks. But according to some people, Blockchain technology will survive even if the cryptocurrencies lose their charm.