Eastman Kodak Company recently announced their entry into cryptocurrencies. They say their primary concern is protecting copyrights in this endeavor. They teamed up with WENN Digital Inc. to launch two new parts of the company, KODAKOne and KODAKCoin. One very influential hedge fund manager, Sahm Adrangi, called the whole scheme as complete nonsense and something this company is using to obfuscate that they are fundamentally a broken and mismanaged company. Visit Crunchbase to know more about Sahm Adrangi.
There are all sorts of issues that have emerged as Eastman Kodak took this new approach, Sahm Adrangi has said. First, he points to very suspicious trades that the board members of Eastman Kodak have taken. The incrediously gave themselves 370,974 restricted stock units just the day before announcing these new major projects at Eastman Kodack. He reviewed this move, along with security law experts, and said that it is possible that the SEC will investigate this ruling of the board for a violation of securities rules.
Sahm Andrangi’s business he founded, Kerrisdale Capital Management, LLC, also released further information about this development at Eastman Kodak that they uncovered. He said that he thinks they’re just trying to take advantage of the big movement underway in regards to ICOs, or initial coin offerings. He says that he suspects they’re trying to hide fundamentally wrong things with Eastman Kodak by attaching themselves to the new hot thing which is cryptocurrencies. As he points out, these are imaginary currencies that are backed by absolutely nothing. That Eastman Kodak thinks anyone in their right mind would accept a KODAKCoin for their copyrighted images is absurd on the face of it.
Sahm Adrangi is a well known hedge fund manager who lives in New York City. He founded Kerrisdale in April 2009 after having been in the financial industry for about five years. He had previously worked at a number of financial firms including Chanin Capital Partners, Longacre Fund Management LLC, and the international firm Deutsche Bank. He is also a graduate of Yale University where in 2003 he earned a bachelor of arts in economics. Follow Sahm Adrangi on Twitter.