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– Vandit P
SoftBank Group Corp. reported a Q1 net profit of JPY 347.33bn ($2.2bn), beating market expectations despite an 18% YoY decline. This was primarily powered by a massive JPY 1.3tn ($8.5bn) unrealized gain on its investment in Intel, following a sharp rally in the chipmaker’s stock price. The windfall from Intel helped counterbalance a flattening in valuation gains from OpenAI. SoftBank logged zero net gains or losses on its OpenAI holdings for the quarter, keeping its estimated fair value unchanged at $89.6bn. Despite the pause in OpenAI’s valuation growth, SoftBank remains committed to its long-term AI strategy, deploying $20bn into the startup earlier this year with plans for an additional $10bn injection by October. While its legacy investments and Intel holdings paid off, SoftBank’s flagship Vision Funds recorded diminished contributions.
SoftBank’s dollar bonds were trading stable, with its 6.875% Perp at 99.6, yielding 7.4%.
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