Temasek Holdings Limited, a Singaporean-based investment company has released a statement that it is already making plans to write down its investments that are still held in collapsed FTX due to the firm’s bankruptcy.
According to the statement, Temasek revealed that its total holdings in the trading firm are currently worth $275 million. Temasek also added that the company is willing to write down its funds regardless of the outcome of FTX’s application for bankruptcy protection.
Temasek, whose assets were worth $294 billion as of the end of March said its aim has always been to build the blockchain industry instead of investing directly in cryptocurrencies.
Temasek explained that its investment of $275 in FTX was spent between October 2021 and January 2022. $210 million was used for a minority investment of roughly 1% in FTX International while $65 million was for a minority interest of roughly 1.5% in FTX US.
The collapse of FTX and the subsequent resignation of its former CEO, Sam Bankman-Fried has shaken the blockchain ecosystem. FTX used to be described as a safe platform by its customers because of its large investment holdings and collaborations with top crypto firms across the globe.
Crypto Companies Write Down Their Investment
Temasek is a global investment company with 12 offices across 8 different countries. Temasek believes it has a long-term investment horizon because the firm invests off its balance sheet.
Temasek is not the only firm that has written down its investments amidst the ongoing crisis in the FTX exchange. SoftBank Group Corp, a Japanese investment company and one of FTX’s backers has also announced that the firm will be writing down its total funds with FTX. SoftBank had earlier revealed a $100 million venture capital investment in a struggling firm and stated that it will not experience a meaningful decline in the value of its ownership in the company.
A well-known venture capital company, Sequoia Capital, is one of the firms that earlier write its investment in the faltering cryptocurrency exchange FTX down to zero. Sequoia announced the news via Twitter declaring that its $213.5 million stake in FTX and FTX.US, the exchange’s American division, had been decreased to zero.
Here is the note we sent to our LPs in GGFIII regarding FTX. pic.twitter.com/Cgp1Yxk1pz
— Sequoia Capital (@sequoia) November 10, 2022
Sequoia is one of the firms that assisted FTX to reach a valuation of $18 billion by participating in FTX’s $900 million funding round last year.
