Bitcoin may have taken some hits over the past few weeks with all the Mt. Gox issues but, like we reported earlier this week, this isn’t stopping investors who see a bright future for the cryptocurrency from trying to cash in.
Meet Zhenya Tsvetnenko, a technology entrepreneur who has been living in Perth. He wants to do a reverse takeover of Macro Energy Ltd. Macro Energy Ltd. is an Australia-listed company that has been struggling to make a profit ever since a series of investments in oil and gas didn’t turn out to be as profitable as expected. Tsvetnenko aims to raise 9.1 million Australian dollars (that’s 8.2 million US dollars) with this business deal.
Obviously, Tsvetnenko is not interested in the current workings of the company. Instead, he wants to turn Macro Energy Ltd. into a provider of Bitcoin services such as trading, digital wallets and mining. Because of these changes, he’s also planning on renaming Macro Energy to digitalBTC.
This isn’t Tsvetenko’s first endeavour in the world of new technologies. According to a recent list of wealthy Australian entrepreneurs published by Fairfax-owned BRW magazine in October, Tsvetnenko has made a 60 million Australian dollar fortune from developing mobile telephone and web-advertising applications.
As it now appears, Tsvetnenko will be several people among digitalBTC’s major shareholders. A person familiar with the whole takeover said Rod Jones will be found there, as well. Jones is known as chief executive of education provider Navitas. Perth-based broker DJ Carmichael is leading the raising.
Because of a pending significant transaction and capital raising, all shares in Macro Energy have been suspended for an unlimited time since March 6. Macro Energy Ltd., currently worth 5.6 million Australian dollars, hasn’t given further details to the Australian Securities Exchange.
Bitcoin’s value has been on a rollercoaster ride since the start of 2013. The cryptocurrency started at about 13 US dollars, soared above 1000 US dollars in December and took a dive again after some bad publicity in early 2014. Sentiment took a big knock in late February when Mt. Gox, once the dominant exchange for bitcoin trading, shut down and filed for bankruptcy in Tokyo after revealing it had lost almost 750,000 of its customers’ bitcoins worth more than 470 million US dollars.
Because of these price swings, some investors have been hit pretty hard. Fortress Investment Group LLC recorded an unrealized loss of 3.7 million US dollar. This loss was due to their decision to buy 20 million US dollars worth of Bitcoins last year. The asset-management firm held 16.3 million US dollar worth of Bitcoins at the end of 2013, according to a filing with the U.S. Securities and Exchange Commission
It’s clear that investing in Bitcoin still isn’t a full-proof secure deal. Making a profit depends on so many things, not the least on the news of the day, making the cryptocoin very volatile. But, as volatile as Bitcoin may be, this doesn’t seem to scare investors. Instead, Bitcoin is hot news right now, and this doesn’t seem to be disappearing anytime soon. Investors also know that taking a dive down doesn’t mean the end for the virtual currency. It can rise as fast as it came down. After surviving easily through all the bad news of the past few weeks, one can only believe that the only way is up for Bitcoin.
Last modified: April 20, 2014 18:34 UTC