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SoftBank Might Write Off $100M Loss On Stake Held In Beleaguered FTX Crypto Exchange

  • Investors and analysts probably have the answer to the question: How much will SoftBank Group Corp SFTBY lose on the crypto exchange’s meltdown?
  • SoftBank did not provide details on how much money it put into FTX (FTT/USD) or where it valued the stake in recent quarters. 
  • SoftBank participated in a $900 million series B funding round last year and another $400 million this year, according to statements released by FTX. 
  • Related: Troubled Crypto Exchange FTX Reopens Withdrawals.
  • SoftBank Group Corp, Bloomberg reported, invested around $100 million in the crypto exchange and anticipated writing down the entire value of the stake, citing a person familiar with the matter. 
  • SoftBank had put less than $100 million and had kept the investment marked close to cost rather than boosting the valuation and recording a profit, the person said. SoftBank will likely write down the holding in the December quarter.
  • One of FTX’s primary backers, Sequoia Capital, promptly reassured its investors, saying its exposure was limited and said it wrote down the full value.
  • Picture via Shutterstock

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