Brazil’s richest man lost $30 BILLION in just 24 months.
From $30B → negative $1B (the fastest billionaire collapse in history).
It wasn’t gambling.
It wasn’t crime.
It wasn’t drugs.
It was something he discovered 10,000 feet underwater.
The story is WILD: 🧵👇
From $30B → negative $1B (the fastest billionaire collapse in history).
It wasn’t gambling.
It wasn’t crime.
It wasn’t drugs.
It was something he discovered 10,000 feet underwater.
The story is WILD: 🧵👇
The discovery was in Brazil's Campos Basin.
Geologists found what they called massive oil reserves.
Deep underwater fields that could rival Saudi Arabia.
Eike Batista bet his entire empire on those fields:
Geologists found what they called massive oil reserves.
Deep underwater fields that could rival Saudi Arabia.
Eike Batista bet his entire empire on those fields:
By March 2012, that bet made him the 7th richest person on Earth.
His company OGX raised $3.7 billion in Brazil's largest IPO ever.
Zero operational oil fields. Just promises.
Every company in his empire ended with "X" for wealth multiplication:
His company OGX raised $3.7 billion in Brazil's largest IPO ever.
Zero operational oil fields. Just promises.
Every company in his empire ended with "X" for wealth multiplication:
Batista made bold public promises.
He'd make Brazil an oil superpower. He wanted to become richer than Carlos Slim.
The commodity boom made it all seem possible.
Then they started drilling those underwater fields...
He'd make Brazil an oil superpower. He wanted to become richer than Carlos Slim.
The commodity boom made it all seem possible.
Then they started drilling those underwater fields...
Deep underwater, the truth emerged.
The geological complexity was unlike anything they'd modeled.
4 out of 5 fields had to be abandoned completely.
Actual production: 10,000 barrels per day. They'd promised millions.
The geological complexity was unlike anything they'd modeled.
4 out of 5 fields had to be abandoned completely.
Actual production: 10,000 barrels per day. They'd promised millions.
OGX shares crashed 99%.
Bonds traded at 8% of face value.
By mid-2013, OGX alone owed $5 billion.
But Batista had made a fatal structural error that amplified everything:
Bonds traded at 8% of face value.
By mid-2013, OGX alone owed $5 billion.
But Batista had made a fatal structural error that amplified everything:
He'd interconnected every company in the EBX empire.
OGX's collapse triggered MMX (mining) to fail. Then MPX (energy) started hemorrhaging cash.
Total debt across the empire: $11 billion.
Creditors like Mubadala and BNDES called everything in at once.
OGX's collapse triggered MMX (mining) to fail. Then MPX (energy) started hemorrhaging cash.
Total debt across the empire: $11 billion.
Creditors like Mubadala and BNDES called everything in at once.
The timeline is staggering:
March 2012: Worth $30 billion.
November 2013: OGX declares bankruptcy.
January 2014: Net worth goes negative.
From 7th richest globally to negative $1 billion in 24 months.
March 2012: Worth $30 billion.
November 2013: OGX declares bankruptcy.
January 2014: Net worth goes negative.
From 7th richest globally to negative $1 billion in 24 months.
Desperate to save the empire, Batista made it worse.
He bid for the Maracanã stadium.
Bought Rock in Rio festival.
Renovated luxury hotels.
Each venture burned more cash while the oil fields produced nothing. Pride prevented him from selling when he could.
He bid for the Maracanã stadium.
Bought Rock in Rio festival.
Renovated luxury hotels.
Each venture burned more cash while the oil fields produced nothing. Pride prevented him from selling when he could.
The financial collapse exposed everything.
2017: Arrested on bribery charges
2018: Sentenced to 30 years in prison
Banned from running public companies for 7 years
$132 million in fines for market manipulation
The underwater discovery had destroyed more than money.
2017: Arrested on bribery charges
2018: Sentenced to 30 years in prison
Banned from running public companies for 7 years
$132 million in fines for market manipulation
The underwater discovery had destroyed more than money.
The lesson from underwater drilling is brutal:
Never build an empire on unproven assets.
Batista confused potential with reality.
He leveraged everything on what might exist.
Real wealth comes from boring, proven systems that generate cash today.
Never build an empire on unproven assets.
Batista confused potential with reality.
He leveraged everything on what might exist.
Real wealth comes from boring, proven systems that generate cash today.
Thanks for reading!
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If you found this post interesting, make sure to follow @Nas_tech_AI for more insights on AI and business.
Your support means a lot.
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