SoftBank Group will write down its stake in failed crypto exchange FTX to zero, according to a Barron’s report on Tuesday that cited unnamed sources.
See related article: FTX files for bankruptcy, Sam Bankman-Fried steps down as CEO
Fast facts
- SoftBank’s investment in FTX is less than $100 million, representing less than 0.4% of the bankrupt crypto exchange’s equity, the source said.
- SoftBank Chief Financial Officer Yoshimitsu Goto said the company had invested US$100 million in FTX in response to a question during an earnings call with reporters on Friday, adding the amount was “not material” to the overall company.
- SoftBank invested in FTX in early 2021 as a part of FTX’s Series C funding. The position is held by SoftBank Vision Fund 2.
- The source added that SoftBank held the stake on its balance sheet at cost, although other investors subsequently invested at higher prices.
- SoftBank has no direct position in cryptocurrencies, the source said, according to Barron’s.
- SoftBank Group shares fell 12.7% on Monday after it reported a loss of $926 million on Friday for the six months through September due to a slump in the performance of its investment operations.
See related article: Markets: Bitcoin, Ether rise amid positive inflation data, despite reports of Russian missile strikes in Poland
