SoftBank Group Corp. invested just under $100 million in the crypto exchange FTX.com and anticipates writing down the entire value of the stake, according to a person familiar with the matter.
(Bloomberg) — SoftBank Group Corp.
invested just under $100 million in the crypto exchange FTX.com and anticipates writing down the entire value of the stake, according to a person familiar with the matter.
The Japanese company’s exposure to FTX has been the subject of much debate in recent days after co-founder Sam Bankman-Fried warned that without a cash injection the company would need to file for bankruptcy.
SoftBank had put in a total of 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, asking not to be identified because the details are private.
SoftBank will likely write down the holding in the December quarter.
SoftBank hadn’t publicly detailed how much money it put into FTX or where it valued the stake in recent quarters. In contrast, Sequoia Capital, one of FTX’s primary backers, swiftly put out a statement reassuring investors its exposure was limited and saying it wrote down the full value.
As FTX Melts, Analysts Race to Calculate SoftBank’s Exposure
SoftBank participated in a $900 million series B funding round last year and another $400 million this year, according to statements released by FTX.
Multiple investors put down money in the two rounds, including Sequoia and Coinbase Ventures, and no breakdown was provided.
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