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Summary:

MtGox creditors and an investment group struck a deal to revive the bitcoin exchange as liquidation proceedings play out in Japan.

In this week’s bitcoin review, we take a look at the latest effort in reviving MtGox.

Will MtGox be bought out?

Two weeks ago, it looked like the final nail was in the coffin for MtGox after Mark Karpeles moved to liquidate the troubled exchange. This week, the Wall Street Journal reported that a last-minute move by investors may revive the exchange after all.

The Sunlot investment group, which includes bitcoin entrepreneur Brock Pierce and venture capitalists William Quigley and Matthew Roszak, first presented their plan in Februrary to Karpeles, who eventually agreed and sent a letter to the courts in support of it. Karpeles then also filed the motion to liquidate the exchange, starting those court proceedings. With the clock now ticking, the MtGox creditors involved in the class-action lawsuits in the U.S. and Canada reached a deal with the investment group to receive a 16.5 percent stake of the future company. The deal can’t be formalized without court approval though. At a hearing yesterday, Coindesk reported that the judge delayed the case until May 13 after the defense requested an extension.

The market this week

The price of bitcoin fell $40 at the start of the week, but then hovered around the $450 mark. The market closed at $456.27 on Thursday, but had fallen to $444 at 9:55 a.m. PST.
bitcoin price may 1
For background on why we’re using Coindesk’s Bitcoin Price Index, see note at bottom of the post. 

In other news we covered this week:

  • If you’re an undergraduate at MIT this fall, you’ll be welcomed back to campus with $100 worth of bitcoin. The college campus might be a perfect incubator for building an ecosystem around digital currencies when students are already used to dealing with mealpoints and campus cash.
  • Bloomberg added bitcoin to its financial terminals. While it’s not quite an endorsement, it does show a growing interest in the cryptocurrency from high-level financial players.

Here are some of the best reads from around the web this week:

Bitcoin in 2014

Bitcoin price hasn’t crossed the $600 mark since mid-March.

The history of bitcoin’s price

A note on our data: We use CoinDesk’s Bitcoin Price Index to obtain both a historical and current reflection of the Bitcoin market. The BPI is an average of the three Bitcoin exchanges which meet their criteria: Bitstamp, BTC-e and Bitfinex. To see the criteria for inclusion or for price updates by the minute, visit CoinDesk. Since the market never closes, the “closing price” as noted in the graphics is based on end of day Greenwich Mean Time (GMT) or British Summer Time (BST). 

Photo from Julia Zakharova/Shutterstock