There are several companies that could be affected by the FTX bankruptcy. This was announced by the American financial giant Morgan Stanley CNBCWednesday (November 23, 2022).
This statement coincided with a drop in Coinbase’s (COIN) share price on the US stock market on the same day.
According to Morgan Stanley, there are a number of large companies that could potentially be affected by the collapse of FTX, which filed for bankruptcy in the US last Friday (11/11/2022).
In US trading, Coinbase share prices came under renewed selling pressure this week amid concerns about spillover from the FTX collapse earlier this month.
Based on Finra-Morningstar data, Coinbase stock price has been observed moving in the opposite direction.
COIN shares, which have actually been hit by FTX’s negative sentiment, are several other companies that Morgan Stanley calls potentially under pressure.
Just so you know, the company Coinbase has an investment exposure of about 15 million US dollars in crypto assets on FTX.
Morgan Stanley analyst Todaro said there is a risk of continued impact from this FTX.
The FTX bankruptcy has a huge impact
“There are 63 companies that could suffer losses or have their capital stuck in FTX. The findings are based on their own research, combined with findings in mass media and publicly accessible documents,” Todaro said.
The companies mentioned include loan companies (lender), trader, crypto exchange to investors.
For the record, FTX owes its creditors at least US$3 billion.
CNBC published a table showing 19 companies identified by Morgan Stanley as having significant exposure to FTX.
While Coinbase COIN only has US$15 million in crypto assets on FTX, Todaro said he sees more risk for crypto exchanges coming from the FTX boom.
Of the 19 companies listed, 15 have confirmed some exposure to FTX (although the numbers may differ from Morgan Stanley’s estimates).
Among the 19 companies are crypto-related company names including: Paradigm, Layer Zero and Ikigai.
Venture capital firm Sequoia Capital is the most exposed entity on the list, with $213.5 million in risk
Previously, Sequoia said it would reduce its investment in FTX to zero. Meanwhile, Temasek, Singapore’s state-owned holding company, said it has invested more than US$200 million in FTX.com and FTX US.
Is Sequoia Capital Apologizing After Losing $150M Investment in FTX?
Todaro continued, several other companies are: Galaxy DigitalTravel, Coinbase in Softbank. If the total investment value of the four companies reaches 194 million US dollars.
Barclays analyst Benjamin Budish also estimates the impact of the FTX collapse on Coinbase, with a total value of around US$8 million.
Morgan Stanley also mentioned other companies, such as Ledn, BlockFi, Amber Group, Capital of Skybridge and Selini Capital
“Transmission risk due to FTX failure remains, Morgan Stanley said. And there will be a large outflow of capital from crypto exchangeas institutional and retail investors sell assets or transfer their holdings to wallets offline,” He said. [ps]