After the Divorce, I Found a Thousand Bitcoins - Chapter 47
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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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I Got Divorced and Found a Thousand Bitcoins Episode 047
Having made his decision, Kang Hyeon convened a full company meeting at KH Capital.
And at that meeting, he shared the decision he had made.
“There’s a company called Nereid Cooling Systems.”
When he pressed the remote, a brief introduction of Nereid appeared on the main screen.
“It’s a place that develops technology called immersion cooling, and the market assessment is that once their technology is commercialized, data center cooling technology will advance by leaps and bounds.”
Cooling technology was the most important technology for data centers.
Current data centers use both air cooling and water cooling, but air cooling is used more due to construction and operating cost issues.
However, AI data centers required water cooling as essential.
The problem was that the initial investment cost for water cooling was too high.
The issue with Arkon this time was also that CAPEX was too high.
“If immersion cooling technology is commercialized, we’ll be able to noticeably lower CAPEX. Plus, OPEX will also be reduced.”
OPEX meant maintenance and operating costs.
The biggest problems with water cooling were the treatment of coolant, pump power, and the need to periodically manage filter corrosion.
Most importantly, the biggest problem was having to reinstall equipment every time GPU generations changed.
Moreover, if even one leak occurred, servers would immediately shut down and risks would explode.
In contrast, immersion cooling could reduce these risks.
“Nereid is evaluated as being ahead of other companies in this technological capability, but the problem is that recently, credit ratings for DC have declined in the investment sector.”
“Most importantly, Nereid is betting everything on immersion cooling technology, so the risk is also high.”
“Nvidia reducing investment also seems to be acting as one risk factor.”
Kwangho and Seong-won spoke in succession.
Nereid was a promising company in the DC sector.
The problem was that as the market became difficult, investment in venture companies decreased.
Especially the bear market hit by the Arkon blow created an opportunity for reduced investment in data centers.
“Are you thinking of investing in Nereid?”
Kwangho asked.
Having heard the story up to this point, it wasn’t difficult to infer what Kang Hyeon was thinking.
Kang Hyeon shook his head and placed documents on the table.
“To be precise, it’s bond acquisition.”
“Bonds?”
“Yes. An IR came from JP Morgan. One of them was Nereid’s bond product.”
“Nereid shouldn’t be at a size to issue additional bonds currently.”
“Not additional bonds, but existing bonds. Whiterock Capital refused to rollover the bonds they held, so maturity arrives in two months. If they can’t prevent that, Nereid has a high possibility of defaulting.”
Nereid’s default.
This could send a very big message to the market.
“If this default becomes reality…”
“It could lead to chain defaults for similarly sized data centers. It would be a disaster for JP Morgan.”
JP Morgan held numerous data center bonds.
Moreover, since they brokered various bonds, they couldn’t avoid responsibility.
Since credit itself could be shaken, JP Morgan had to avoid such a scenario.
“So they requested help from us?”
“Not just us, they probably requested it from global investors. The fact that it came to us means they selected us as a major investor too.”
In less than a year.
KH Capital had become a company recognized by JP Morgan.
That fact was enough to make the employees proud.
“What’s important is the risk we take when we acquire Nereid’s bonds. And let’s discuss how much money we need to invest in Nereid for it to be an efficient investment.”
“Yes!”
Confidence was evident in the employees’ voices.
* * *
New York.
Richard Blake continued working late into the night for the first time in a while.
“Johnson Capital showed a skeptical reaction to bond acquisition.”
All the news coming in was negative.
“Word is gradually spreading in the market that Whiterock refused rollover. Thanks to that, stock prices are falling and credit ratings are also declining.”
“As spreads widen, the bond group is asking for fact confirmation.”
“Some hunters seem to be jumping in for short-term bond profits.”
The market’s pack of wolves had started to smell blood.
If they rushed in, there was a high possibility that Nereid’s already weakened lifeline would be cut off.
“What is Nvidia saying?”
“Their position is that there will be no additional investment.”
Nvidia continued its conservative stance.
They were reducing additional investment while building internal strength.
“What about Intel and AMD?”
“Similar. It seems everyone is being cautious because of this Arkon incident.”
“The aftermath is lasting longer than expected.”
“The analysis is that this atmosphere will continue for at least 1-2 years.”
The Arkon incident didn’t lead the market to destruction.
And it didn’t lead the market into a long-term recession like the dot-com bubble.
But one thing was certain: the Arkon incident succeeded in making the market conservative.
“If Nereid defaults, how far do you think the additional damage will extend?”
“Just picking out DC companies with maturity within a year would amount to 30 billion dollars. If Nereid defaults, rollover refusals for these companies seem likely to occur.”
30 billion dollars.
An astronomical scale of rollover refusal incidents would certainly come as a disaster to the market.
“How about we just buy the bonds ourselves?”
A Risk Team employee said.
“That’s the last resort. Think about the damage to our reputation the moment we buy those.”
“Ah, yes.”
JP Morgan wasn’t simply a place that handled money well.
It was a bank maintained by credit and reputation.
For such a place to buy bonds they had underwritten wouldn’t look good internally or externally.
That’s why buying bonds at an investment bank was always the last resort.
“Contact the clients once more. And make sure to appeal the company as much as possible.”
“Understood.”
What was most needed now was finding clients to purchase the bonds.
After ending the meeting and returning to his office, Blake’s secretary told him.
“Ten minutes ago, Kang Hyeon Choi from KH Capital left a message.”
“A message?”
“Yes. He said there’s something to discuss regarding Nereid, so please call when the meeting ends.”
Richard Blake’s eyes lit up.
* * *
Kang Hyeon, who was waiting for contact in his office, soon received Richard’s call.
“Yes, Richard. It’s been a while.”
-Sorry for the late contact. The meeting ran long, so I just received the message.
“Not at all. As you might expect, the reason I contacted you is regarding Nereid bonds.”
-Do you have purchase intentions?
“If the price is right, I have intentions.”
-As you know, for this transaction, we can only act as intermediaries. You’ll have to negotiate directly with Whiterock Credit.
“Understood. Then I’ll go to the United States.”
-I’ll prepare a private jet.
“Thank you. Oh, and could I ask for additional materials on Nereid?”
-Understood. I’ll prepare the relevant materials so you can review them on the plane.
“Yes, then I’ll see you in New York.”
After hanging up the phone, the corners of Kang Hyeon’s mouth turned up.
“From the sound of his voice, it seems there are no other competitors so far.”
This was somewhat expected.
Nereid wasn’t simply a company problem, but a situation where industry-wide risks had exploded.
In such circumstances, there wouldn’t be many places willing to purchase bonds from a company whose profitability hadn’t been properly verified.
‘If there are no competitors, I can definitely purchase at a low price.’
Of course, he would need to go to the United States to know the situation accurately.
“Ah… I should send a message to my teacher too.”
[Teacher, I have a business trip to the United States, so I’ll have to skip this week’s PT session.]
[Yes, then I’ll move your class to next week.]
A reply came immediately.
Just then, there was a knock and Kim Ha-ryul entered.
“Director, I’ve gathered some more information about Nereid Cooling Systems.”
“Oh, really?”
Kang Hyeon took the documents she handed him and checked the contents inside.
‘Hmm?’
The content was extremely professional.
Not only did it contain information about the company, but it also recorded what mechanisms the technology they were developing operated on.
“Did you do this alone? There’s a lot of technical content.”
“Ah, yes. I originally graduated from engineering school…”
“Oh? You did?”
“Yes. I majored in statistics and graduated. I also briefly studied chemistry as a minor. Since immersion cooling involves quite a bit of chemical engineering knowledge, I organized it.”
“Oh ho…”
Originally, there were many engineering graduates on Wall Street.
Yeouido was the same.
So there was nothing strange about her having graduated from engineering school.
“Which school did you attend?”
“I graduated from Yonsei University.”
“Wow… you’re quite talented.”
He learned about a different side of her.
As Kang Hyeon examined the materials, he nodded, realizing there were definitely many parts he didn’t know about.
“This worked out well.”
“Pardon?”
“I’m going to the United States. Would you like to come with me?”
“To the United States?”
“Yes. I’m going to negotiate regarding the Nereid bond purchase. While we’re there, I think it would be good to tour their headquarters too.”
Purchasing bonds ultimately meant you needed to know the company well.
Initially, he planned to decide based on charts, financial statements, and related documents, but for companies where such technology was core, direct inspection was a better method.
He was going to pass on that because he lacked relevant knowledge, but since she had the knowledge, it seemed fine to visit together.
“Is it a business trip?”
“Yes. Choi Lawyer is coming too, so you can come with a comfortable mind.”
“Ah… yes.”
“Huh? Is there some problem?”
“No. I’ll prepare for the business trip.”
“Yes, then please prepare.”
Kang Hyeon turned his gaze away from her as she bowed and left the Executive Office, then looked at the materials again.
‘I was a bit concerned that Nereid’s light didn’t show up in the charts but only in the IR. It’s fortunate I can inspect their headquarters.’
Of course, this was only possible if headquarters gave permission.
“Ah, I should make the phone call first.”
Kang Hyeon dialed Richard’s number and began his final preparations.
* * *
The day of the United States business trip.
Kang Hyeon, Choi Lawyer, and Kim Ha-ryul took the protocol vehicle prepared by JP Morgan and headed to Gimpo Airport.
“So we take the private jet from Gimpo Airport?”
Kang Hyeon nodded at Ha-ryul’s question.
“I also thought we might be able to take it from Incheon Airport. But they said private jets only depart from Gimpo. I was surprised when I first rode one.”
“They say the facilities at Incheon aren’t all built yet. They say next year we’ll be able to depart from Incheon Airport too.”
While making such casual conversation, the vehicle arrived at Gimpo Airport.
After completing departure preparations, the three people boarded the private jet following the guidance.
“Wow…”
“Oh…”
Choi Byeon and Kim Ha-ryul exclaimed in admiration at the scenery of the private jet they were riding for the first time.
Since Kang Hyeon himself had the same reaction initially, he smiled and boarded the plane first.
‘Now that I’ve ridden it once, I’m getting somewhat used to it.’
Thinking that as he headed to his seat, a flight attendant approached and took his coat.
“Thank you.”
“Not at all, shall I prepare a drink for you?”
“I’d like an iced americano, please.”
“Yes, I’ll prepare it right away.”
“Oh, and there should be materials sent from JP Morgan.”
“Yes, I’ll bring them to you as soon as we take off.”
“No. Please bring them now.”
“Understood. Then I’ll bring them right away.”
Right after Choi Byeon and Ha-ryul took their seats, the flight attendant brought a tablet PC.
“This is the tablet PC provided by JP Morgan.”
“Thank you.”
Taking it, Kang Hyeon immediately turned on the power.
Although JP Morgan’s logo was embedded on the outside, the OS was familiar, so finding the materials wasn’t difficult.
When he executed it, JP Morgan’s internal materials appeared.
After turning a few pages, a noticeable phrase appeared.
[Internal Technical Risk Report]
[If Nereid’s new immersion cooling technology succeeds, it has the potential to dominate the market instantly.
However, if it fails, the company’s survival could be difficult as it is concentrated on immersion cooling technology development.
The way to resolve the risk is to diversify technology development and strengthen the company’s profitability…]
Simply put, Nereid was a company that had gone all-in on new technology.
With no other profitability, if this technology development failed, it would be like a castle where everything would collapse.
‘High risk, high return.’
But if it succeeded, the return would be market domination.
Confirming that fact, the corners of Kang Hyeon’s mouth turned up.
‘This is exactly the structure I like.’
To others, it was gambling or a decisive move.
But to Kang Hyeon, who could see the light, it was nothing more than a sure bet.
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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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