I Am the Third-Generation Heir of a Conglomerate - Chapter 486



Only Noblemtl

486. The Time of Promise (1)

Bitcoin’s downtrend continued into February.

There were occasional small increases, but not enough to change the trend.

Eventually, it fell by 70% to 9 million won.

Although there were even talks of a tearful bear market, there were smiles on the lips of Vice Chairman Han and the financial tower company.

“I was worried because the National Pension Service bought Bitcoin, but the amount was not as large as I thought. Thanks to this, the price fell by 70%.”

“I’ve had enough fun with Bitcoin now.”

“Even if it falls further from here, I think the limit is around 10%. Unlike altcoins, Bitcoin has a solid center, so I don’t expect it to fall any further than that.”

Large IT companies were at the center.

Of course, large IT companies have not invested in Bitcoin.

When Bitcoin was first designed, large amounts of Bitcoin were distributed to large IT companies.

The targets were large IT companies such as Apple, Amazon, and Google.

Investors feel psychologically secure simply by holding Bitcoin.

“The price of Bitcoin will not rise for the time being.”

“It is unfortunate, but we are now going to begin the liquidation process.”

“Invest some of the liquidated money in Nvidia. Nvidia is the company that will be hit the hardest if Bitcoin falls.”

“I will prepare for short selling.”

Nvidia was the world’s largest graphics processing unit (GPU) chip manufacturer.

GPU chips were essential for mining altcoins including Bitcoin.

Bitcoin price surge drives up demand for GPU chips

“NVIDIA’s stock price is set to follow the price of Bitcoin.”

“The timing of Bitcoin price rise overlaps with the timing of Nvidia stock price rise.”

“It will take about six months for the impact to be felt, so stock prices will fall significantly starting in the second half of this year.”

“The current stock price is $67. If the Bitcoin mining craze dies down, I expect the stock price to fall by close to 50%.”

This year, Nvidia’s market cap could fall to $80 billion.

At the time of the regression, I remember it being around 400 billion dollars.

There was no reason not to invest, as you could see a profit of up to 5 times, and you could make even bigger profits by short selling and then buying it back when it hits its lowest point.

“If Nvidia’s stock price falls to $35, buy the stock. And buy all the shares of Nvidia held by other financial institutions.”

“I understand that Wall Street owns over 30% of Nvidia. How much would they be willing to buy?”

“How much stock do NVIDIA executives own?”

“Unlike other IT companies, the amount of stock owned by management is not that much. The CEO owns only 3.5% of the stock. Even if you include the CFO and other management, it is less than 6%.”

That meant there were a lot of stocks released into the market.

The amount of stock held by financial institutions and institutions will be large, as the amount held by management is small.

In addition, I had even entered into a loan agreement with Shopbank, the fourth largest shareholder, using Nvidia shares as collateral.

“The smaller the amount of shares held by management, the larger the amount of shares we can acquire.”

“We will first negotiate with Vanguard and BlackRock, which have the largest stakes. However, they may ask for other stakes in exchange for money.”

“I wouldn’t refuse if you offered to trade it for oilfield shares or oil company shares.”

“I’ve already been contacted. They’ve shown great interest in the genetic stake.”

The representative asset management companies on Wall Street were Vanguard and BlackRock.

There was no great difficulty in contacting them as we had already entered into equity agreements with them on several occasions.

However, since all the contracts signed so far have been beneficial to Taewoo Group, there is a good chance that they will show resistance.

“We must never give the impression that we want Nvidia’s stake first.”

“We will make them put Nvidia shares up for trading first. They are the representatives of Wall Street, so they will already know that Nvidia’s stock price will fall, so it will not be difficult.”

“But aren’t you curious as to why you would want to buy Nvidia stock?”

It was a vice president who would have asked questions several times in the past.

But today, he just silently accepted it without saying anything.

“It’s not like we’re acquiring all of Nvidia. Even if we acquire 50% of the shares, $50 billion would be enough.”

“It doesn’t cost much, so I guess you’ll just accept it.”

“And for the growth of Taewoo Semiconductor, acquiring Nvidia shares did not seem like a bad idea.”

Nvidia has been one of the major customers in the foundry market.

Taewoo Semiconductor was also receiving a lot of orders from Nvidia, so Vice Chairman Han thought that if we acquired a large amount of shares, we would be able to secure even more orders.

“The increase in orders could be the reason for acquiring Nvidia shares. But it’s not just for orders. Nvidia’s potential is that it can grow 10 times more than it is now.”

“Although Nvidia has a monopoly on the graphics market, it does have competitors. And the graphics market itself is not that big. In particular, if the mining craze dies down due to the Bitcoin price drop, the market size could shrink even further.”

It wasn’t just Vice Chairman Han’s prediction.

The head of a large financial organization called Financial Tower was Vice Chairman Han.

It could be seen as a decision made by synthesizing the thoughts of financial companies in the financial tower.

“Currently, Bitcoin is driving the graphics market. However, as various technologies including AI are developed, the size of the graphics market will grow several times larger than it is now. Of course, the Bitcoin market will also account for a large portion.”

“Certainly, in the past, except for the AI ​​developed by Taewoo Group, it was not something that could be called AI, but these days, other companies are also developing usable AI.”

Taewoo Group led AI technology.

Latecomers began to create AI with superior performance by referencing Taewoo Group’s AI.

Of course, the technological gap with Taewoo Group was still serious, and since Taewoo Group held all the related patents, it was difficult for an AI that surpassed Taewoo Group to emerge.

“These days, it’s hard to find an industry that doesn’t use AI technology. To properly utilize AI, you need a high-spec GPU.”

“And autonomous vehicles also require a lot of GPU chips.”

Self-driving cars are more like computers than cars.

To perform properly, a large number of high-performance GPU chips were required.

“Plus, Bitcoin is in the doldrums right now, but once it recovers in a few years, demand for GPUs will skyrocket.”

“This means that most of the technologies that will drive the future will require GPU chips.”

“So, try to acquire as much of Nvidia’s stock as possible. The more the better. But you don’t have to move too quickly. It will probably take at least one or two more years for that time to come.”

If we look only at the point before regression.

It was hard to see Nvidia’s stock price exploding like that.

The stage just before explosion.

So, my plan was to hold it in my hands first and see how much it would grow.

***

A few days later.

I heard that Centurion succeeded in developing a new drug.

It was a sentry that spent over a trillion dollars on research and development every year.

Since this was the first time since Yugovin that a proper new drug had been successfully developed, I immediately rushed to Sentryon to congratulate him.

“Congratulations! Centrian has created the first successful case of developing a new drug using genetic technology!”

“It’s not the first. Gene technology was used to treat severe combined immunodeficiency syndrome in the 1990s. It’s the first gene replacement therapy using gene scissors.”

Dr. Kim Jang-woo pointed out the mistakes as a representative.

Anyway, since they are people who have spent their whole lives doing nothing but research, they can’t tolerate even the smallest mistakes.

“I would like to hear a precise explanation. What disease does it treat and how does it treat it?”

“It is a treatment for spinal muscular atrophy. Commonly known as SMA, it is a fatal disease in which muscles atrophy occurs due to congenital deficiency or mutation.”

For a moment, I felt like I was in a classroom.

Dr. Kim Jang-woo explained for over 30 minutes what kind of disease SMA is.

It was a very fatal disease for infants and young children, and the current treatment was said to be one that required three injections per year to survive.

In Korea, about 30 SMA babies are born every year.

The lecture ended only after I heard an explanation that it was a very rare disease that occurs in only 1 out of 10,000 people.

“You’re saying that there’s a new drug that can cure rare diseases?”

“Existing treatments require lifelong continuous treatment, but the new drug we have developed may be cured with just one dose.”

“I guess you had to take medication for the rest of your life.”

“You have to take the medication three times a year, and each dose costs over 100 million won.”

Just listening to the explanation so far, the smell of a huge amount of money emanates.

Existing treatment costs a whopping 300 million won, three times a year.

Even at the lowest estimate, the lifespan would be 60 years, so this was a method that could cost more than 18 billion won.

But if only we could cure this in one go.

Wouldn’t it be possible to make huge profits?

“How much do you expect the new drug we developed to cost?”

“The price that gives up all profitability is 2 billion won. If you consider profitability, it would cost more than 2.5 billion won.”

“It seems like I have to spend an entire apartment in downtown Seoul on medical expenses.”

My excited heart calmed down.

I didn’t know that a single dose would cost 2.5 billion won.

It was expensive, but it was too expensive. How many people can afford such an expensive drug?

“Considering existing treatments, it is not that expensive. And in the case of gene therapy, it has to be manufactured to fit the patient’s needs, so the unit price itself cannot be reduced.”

“Don’t worry about the price and just focus on developing a new drug. Once you get FDA approval, Taewoo Group will take the lead from then on.”

The New Testament could have been a thorn in the side of the law.

But it was absolutely necessary to show off Sentryan’s technological prowess.

Even if there were losses, we had no choice but to proceed.

“The cost of clinical trials is also significantly higher than that of general new drug development. Although development costs have been reduced thanks to the help of artificial intelligence, which allows for various simulations, the cost is still more than three times higher than that of general new drug development.”

“Don’t worry about the cost. If you are short on development costs, Taewoo Group will support you. Aren’t there patients who die if they don’t receive treatment? Then, of course, we have to develop it.”

“Thank you! I will definitely make sure that the Chairman’s great wishes come true.”

Researchers are overwhelmed with emotion.

But there was another purpose.

For the Corona era, there was a need to raise the value of Sentryon’s name even higher than it is now.

In particular, the development of gene therapy will certainly greatly contribute to increasing the reliability of coronavirus vaccines or treatments that will be developed in the future.

Even if gene therapy causes losses of hundreds of billions of won.

He was confident that he would make tens of trillions of won in profits from the coronavirus treatment.