source avatarBull Theory

Share

🚨 SOFTBANK'S DEBT CRISIS IS GROWING. It is now down -25% in just the last 7 trading sessions. The biggest concern is its exposure to AI. As of June 2026, it held $164 Billion in debt, much of it used to finance its AI investments. The interest costs for this is already at $2 Billion, up 95% from Q1. In September, it raised another $11 Billion at interest rates as high as 9.75%, adding $1 Billion in annual interest. Investors are now panicking over whether these massive costs will ever translate into actual profits. SoftBank’s 5-year default insurance (CDS) shot up by 24 basis points to 424 bps. This makes it a similar story to what happened to Oracle’s 5Y CDS (288 bps) and CoreWeave’s CDS (1,100bps). Higher US inflation and Fed rate hike fears are adding even more pressure. Any corrections in AI valuations could hurt its investments and make it difficult to repay such large debt.

No.0 picture
No.1 picture
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.