Venture funds firm Sequoia Capital has penned down its entire US$213.5 million financial investment in FTX, the business disclosed in a tweet on Thursday.
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- In the letter sent to selected companions, Sequoia noted it marked down its US$213.5 million investment in FTX.com and FTX US to US$ due to the “solvency risk” the crypto business confronted.
- Sequoia attempted to reassure buyers of its “limited” publicity to FTX and that its financial commitment in the exchange platform “is not a major 10 position” in its Global Progress Fund III – the non-public fund in which the bulk of the FTX holdings are held
- The business stated its value basis for the FTX portion of International Advancement Fund III totalled US$150 million, significantly less than 3% of the fund’s committed capital.
- The rest of the firm’s financial commitment in FTX.com and FTX US – US$63.5 million – is held in its Sequoia Cash World Equities Fund and accounts for considerably less than 1% of the fund’s portfolio.
- “We are in the business of having possibility,” Sequoia explained, outlining that some investments “will shock to the upside” and some “will surprise to the downside,” but tried out to present assurance that the enterprise “does not choose this duty lightly” and conducts “extensive investigate and thorough diligence on each expense.”
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