FTX’s bankruptcy filing has had a reverberating effect on the cryptocurrency and financial industries. One of many companies directly impacted by the abrupt turmoil is Softbank. The company has shared its latest round of earnings, which show despite showing a profit for the first time in three quarters, Vision Fund suffered thanks to its investment in FTX.
Reuters reported that Vision Fund lost $9.8 billion on its investments in Q2 2023. A chunk of this includes the money invested into crypto exchange FTX, which filed for Chapter 11 bankruptcy last week. The publication’s sources say that the company’s investment in FTX was under $100 million. Softbank shares were down 12.7% on the news of Vision Fund’s quarterly loss, putting a damper on what was actually a solid quarter profit-wise for Softbank proper.
Softbank Masayoshi Son spoke to Vision Fund’s investment losses this year, signifying a change in philosophy moving forward. "For at least the next few years, I plan to focus solely on Arm's forthcoming explosive growth, while other (Softbank) businesses will remain defensive," he said. "I'm good at offense by nature. I would like to focus on offense for Arm." It appears that Vision Fund will be warier in its investment moves going forward.
Softbank Vision Fund is just one of many companies and organizations impacted by the fallout of FTX’s recent collapse. Over the weekend, esports and gaming content organization Team SoloMid provided a statement on the matter, given its major partnership with FTX. For more on the FTX situation and its impact on the rest of the financial world, stick with us here on Shacknews.
Donovan Erskine posted a new article, Softbank (9984) Vision Fund lost $9.8 billion on investments in Q2 2023
Looks like the FTX portion was only like $100 million so pretty small relatively I guess. Still seems kinda wild.