SoftBank (SFTBY) lost its $100 million FTX investment

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Japanese investment giant SoftBank recently announced that it has closed its global investment in FTX—zero. On November 11, the Bahamas crypto exchange filed for bankruptcy under Chapter 11 of the bankruptcy code. Given the bankruptcy filing, a significant number of companies said they experienced the heat of the FTX explosion.

According to reports, SoftBank Group Corp (SFTBY) has invested around USD 100 million in FTX. The investment came on the heels of the investment bank’s involvement in Vision Funds 2. The fund was made up of many other major venture capital players including Tiger Global, Insight Partners, Lightspeed Ventures and Temasek, etc. . It was after funding that the Sam Bankman-Freid exchange reached a valuation of USD 32 billion in January 2022.

The loss with FTX is not the first for SoftBank

The investment bank also reported losing its investment in several other projects as well. Compared to the last lost investment amount, the capital lost with FTX can be counted as a meager amount.

SoftBank reportedly invested a whopping $18.5 billion in WeWork, a company meant to revolutionize the idea of ​​flexible workspace solutions, ended up losing it all.

Additionally, the bank has invested in a construction technology startup named Katerra around USD 2 billion. The company also closed in June 2021. Digital mortgage company Better.com also said it received a $500 million investment. He also invested around $100 million in the infamous medical startup Theranos.

Now, after losing its investment and writing off $100 million, the banking giant has assured its clients that it will not suffer any significant drop in the real value of its stake.

Not alone in the queue

SoftBank isn’t the only company to report a loss on its investment in the collapsed crypto exchange. One of its early investors, venture capital firm Sequoia Capital, announced that its multimillion-dollar fund would cancel zero.

Recently, Panther Capital and Galois also reported losing around $130 million and $40 million respectively after investing in FTX.

Where is the SFTBY share price likely to move?

Now, with SoftBank reportedly losing its overall investment in the crypto exchange, SFTBY stock is likely to witness the shock.

source – TradingView

SFTBY stock price is approaching to reach 200 DMA, but at present it is likely to act as a support level. This price drop came following the loss of almost $100 million in the collapse of FTX. Buyers therefore reduce their investment. And if buyers fail to hold 200 DMA, the all-time low could be the next stop.

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

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