Sequoia Capital marks down US$214 mln FTX stake to zero

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.

See connected short article: Binance officially backs out of FTX acquisition latest updates and commentary

Speedy details

  • In the letter sent to selected companions, Sequoia noted it marked down its US$213.5 million investment in and FTX US to US$ 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 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.”

See connected article: Bitcoin hits least expensive selling price in two a long time as Binance cancels FTX acquisition

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