SoftBank (SFTBY) Lost its 100 Mn USD FTX Investment

Japanese investment giant SoftBank recently reported to mark off its overall investment in FTX—zero. On November 11th, the Bahamian crypto exchange filed for bankruptcy under the Chapter 11 Bankruptcy Code. Given the bankruptcy filing, a significant number of companies reported to experience the heat of the FTX explosion.

According to the reports, SoftBank Group Corp (SFTBY) invested about 100 million USD in FTX. The investment came in the wake of the investment bank’s involvement in Vision Funds 2. The fund consisted of many other leading players in the venture capitals—including Tiger Global, Insight Partners, Lightspeed Ventures and Temasek, etc. It was after the funding when the Sam Bankman-Freid’s exchange achieved a 32 billion USD valuation in January 2022.

Loss with FTX is Not First for SoftBank

The investment bank has also reported losing its investment over several other projects also. In comparison to the last lost investment amount, lost capital with FTX might be counted as a meager amount.

SoftBank reportedly invested a hefty amount of 18.5 billion USD in WeWork—a company touted to revolutionize the idea of flexible workspace solutions—ended up losing it all.

In addition, the bank invested in a construction tech startup named Katerra about 2 billion USD. The company also shut down in June 2021. A digital mortgage lender firm Better.com also reported to receive 500 million USD investment. It also invested about 100 million USD in the infamous medical startup Theranos.

Now after losing its investment and writing off 100 million USD to zero, the banking giant assured its customers that it would not witness any material markdown in its stake’s actual value.

Not Alone In the Queue

SoftBank is not the only firm reported a loss on its investment within the collapsed crypto exchange. One of its earliest investors, venture capital firm Sequoia Capital reported its millions worth USD fund to write off zero.

Recently Panther Capital and Galois also reported to have lost about 130 million USD and 40 million USD respectively after investing in FTX.

Where is the SFTBY Stock Price Likely to Move?

Now when SoftBank is reported to have lost its overall investment in the crypto exchange, SFTBY stock is likely to witness the shock.

SFTBY stock price is approaching back to hit 200 DMA but at this time it is likely to act as a support level. This price decline came in the wake of it losing nearly $100 Million in FTX collapse. Therefore buyers are reducing their investment. And if buyers fail to hold 200 DMA ahead then the all-time low could be the next stop.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing