Japan’s ‘SoftBank’ Incurs Monster Bitcoin Losses Of $130 Million: CEO Buys At Top, Sells At Bottom

Japanese Tech Firm ‘SoftBank’ Incurs Monster Bitcoin-Based Losses

  • According to a number of reports circulating over the internet recently, Softbank’s balance sheets are loaded with huge debt volumes at the moment.
  • Additionally, it is also being widely rumored that the company is looking to offload its mobile services wing ‘Sprint’ to ‘T-Mobile’ due to its failing finances.

As many of our regular readers may recall, Japanese tech giant Softbank’s value surged quite drastically during the first few months of 2019 — especially after company CEO Masayoshi Son invested in a lucrative stock buyback program as well as other BTC related offerings.

However, over the course of the past few weeks, the company’s fortunes seem to have turned for the worst, with Softbank’s stock value down by nearly 20%.

In this regard, many economists have commented that Masayoshi Son’s latest bitcoin investment has failed mainly because he “bought the flagship asset too high and sold the same for a fraction of its real worth”.

More On The Matter

Softbank’s failed investment is being viewed by many as a sign of what may lie ahead for Son. This is primarily because Softbank has invested big in a number of “tech unicorns” that have failed to deliver on their amazing potential. For example, Son has put in a lot of money into firms like WeWork, Wirecard recently — ventures that have unfortunately failed financially to a large degree.

“The latest investment — which is coming from SoftBank itself, not its nearly $100 billion Vision Fund — values WeWork at $47 billion, and brings SoftBank’s total investment in WeWork to about $10.5 billion, they said.”

  • The firm invested big in Uber after the rideshare company took off in a large way a couple of years back. However, as we all know now, after its initial IPO hype, Uber’s stock prices have dropped quite heavily over the course of the past few months.
  • Softbank put in around $1 billion into Wirecard — a German firm that was recently accused of financial fraud. As a result of these recent accusations, the company’s stock value dropped by nearly 10% within a 24-hour period this past friday.

What Does The Future Look Like For Softbank?

As things stand, Softbank’s executive brass is already looking forward to its Vision Fund II project— through which the company intends to invest an additional $100 billion in various tech upcoming start-ups. However, with the tech giant’s previous investments into Uber and WeWork struggling, it seems as though a lot of people are beginning to lose confidence in the firm.

In regards to the matter, it is worth pointing out that the WSJ recently published a report in which it claimed that the Saudi Arabia Public Investment Fund (SAPIF) has declined to invest in the Vision Fund II project. This is quite shocking to hear since Saudi Arabia was a major investor ($45 Billion) in Softbank’s original Vision Fund venture.

Final Take

In closing out this piece, it should be pointed out that despite all of his recently incurred losses, Mr. Son has still has huge plans to expand his company’s current scope of operations. It now remains to be seen what the future has in store for Softbank.

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