Major Fintech and Blockchain Backer SoftBank Expected to Lose $12.5 Billion

SoftBank Group Corp (SFTBY), the parent company of Fortress Investment Group is expected to lose $12.5 billion for the fiscal year that ended in March, per an April 13 report from Bloomberg.

WeWork — $24 billion loss

It seems that Vision Fund is the main culprit of the anticipated loss. SoftBank Group announced that it would lose $24 billion, driven by its ill-fated investment in WeWork.

On the bright side, the company has a stake in Slack (WORK), which is doing well because of the shift to remote work amid COVID-19.

Mistimed Bitcoin Investment

Son, CEO and founder of SoftBank Group, is a Korean-Japanese entrepreneur and the second-richest man in Japan, known for an early $20-million investment in the Chinese giant Alibaba. He has built a multi-billion dollar conglomerate that includes SoftBank Corp, Vision Fund and Fortress Investment Group.

Reportedly, Son lost $130 million in a mistimed Bitcoin (BTC) investment. Apparently, Son acquired Bitcoins in 2017 at a time when Bitcoin was hovering around its all-time record highs.

Billionaire and Bitcoin supporter Mike Novogratz ran Fortress Investment Group for over a decade. The company has been trying to purchase Bitcoin claims from Mt. Gox creditors. It is not clear whether the financial loss of its parent company will affect Fortress Investment Group.