SoftBank, a Japanese conglomerate that has invested in crypto companies, reported a record quarterly loss of $23.4 billion. The company attributed the loss to the global tech stock sell-off and the rapid fall of the yen, according to an earnings presentation.
The majority of the loss for the fiscal first quarter ended June 30, about $21.7 billion, was tied to the group of SoftBank Vision Fund investment vehicles and largely attributable to declines in publicly traded companies such as ride-share company Uber and home-selling platform Opendoor.
SoftBank’s crypto investments have included exchange FTX , NFT platforms Candy Digital and Sorare, metaverse projects The Sandbox and Improbable and Web3 infrastructure company InfStones.
“We are in a defense mode," CEO Masayoshi Son in a message that accompanied the report. "The world is still very volatile. Inflation is still severe. Interest rate is going up. In a difficult time, we kept on divesting our assets. We reduced new investments. We now have a much more managed, conservative approach to investments."
A weaker yen hurts the company because it translates into a lower number when converted into dollars.