Softbank’s CEO sold Bitcoin at a loss of $ 130 million after being “too distracted”

Masayoshi Son hasn’t had his prime lately. His storied $ 50 billion venture fund saw massive losses in 2019, with budding startups WeWork and Uber seeing this Depreciations in the billions on their markup prices.

But Son’s personal investments also didn’t do so well. According to a new report from Business Insider, the Japanese tycoon posted a staggering $ 130 million loss on its Bitcoin investment back in 2018 after reportedly buying the pioneering $ 200 million cryptocurrency.

His reason? Often times, get distracted by the volatility of the asset.

Bitcoin’s volatility is not for the faint of heart. It remains in pricing mode twelve years after its introduction and, as is well known, fluctuates by several percentage points per day. And while this is beneficial for retail investors looking for volatility to build their portfolio, for old-school investors like Son it could mean changing tens of millions of dollars on a daily basis, creating risk issues.

“Didn’t understand Bitcoin”

Son who spoke on New York Times The NewDealBook conference also added that he did not fully “understand” Bitcoin, despite having pocketed millions of dollars. He found that at this point, at the suggestion of a friend, he parked and spent 1% of his net worth five minutes a day looking for prices.

@masason on Bitcoin: “I don’t understand. … I watch it for at least 5 minutes a day. That distracts my focus on my own business. ”#Dealbook

– Andrew Ross Sorkin (@andrewrsorkin) November 17, 2020

The tycoon then said he found the investment “distracting”. [his] own focus on [his] own business ”before it quickly got tired of checking the prices of Bitcoin every day. Son estimates that he lost around $ 50 million.

However a Wall Street Journal Report suggests Son’s losses were closer to $ 130 million – roughly the total market cap of some low-ranking altcoins.

While happy to be done with Bitcoin, Son said at the conference that digital currencies “are not going to go away anytime soon.” He noticed:

“I think the digital currency will be useful. But I don’t know which digital currency, which structure and so on. “

Bitcoin has seen some sort of resurgence this year and is on its way to printing a new all-time high. The asset traded at just $ 3,700 this March, but passed the $ 18,200 mark this week amid increased adoption and demand for its “digital gold” narrative.

It has even attracted investors like hedge fund manager Paul Tudor Jones and Micheal Saylor, CEO of enterprise software company MicroStrategy, for its global hedge-like real estate. The latter company bought over $ 475 million in Bitcoin in October (profits are said to have been over $ 175 million since then).

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