Temasek Investments in Cloud, IoT, Other Deals Suggest “Minimal” Impact of FTX Write-off, GlobalData Claims

The bankruptcy of cryptocurrency exchange FTX has “highlighted the risk of crypto investment with a number of investors having to write off their losses” including Singapore state investment firm Temasek Holdings (Private) Ltd.

The company recently announced that “it would write off $275 million invested in FTX with its exposure to the company slightly less than 0.1% of its net portfolio value.”

However, the diversity of Temasek’s deal activity in 2022, “which according to GlobalData, includes digital media, cloud, and Internet of Things (IoT), reduces the impact on the company from economic or business shocks like the FTX bankruptcy.”

GlobalData’s Company Analytics Platform reveals “that in 2022 Temasek had the most deal value around digital media, cloud and Internet of Things (IoT).”

The company has ‘been involved in 97 deals so far in 2022’, compared to 162 deals during the same period in 2021, which is nearly a 45% year-on-year decline in deal activity.” For the full year in 2021 Temasek “was involved in 177 deals.”

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments:

“Temasek was involved in less number of deals this year than in any of the previous five years, however the company’s deal value for cloud and IoT in 2022 grew year on year.”

Temasek’s cloud-related investments “included Chinese cloud-gaming company Well-Link Technologies and Indonesian cloud-based warehouse management systems provider, PT Tibeka Logistik (Waresix).”

Pereira adds:

“Temasek is focused on achieving a net-zero portfolio by 2050 and ESG was among the top themes discussed in Temasek’s filings. The company continues to discuss sustainable investing by looking at climate-aligned opportunities and low carbon solutions.”

A recent senior-level job posting for the position of Assistant / Vice President, Sustainability Solutions “with responsibility for seeking investment opportunities in resource efficiency and the circular economy further underlines Temasek’s commitment in this area.”

Pereira concludes:

“Temasek led a $200m investment in Hong Kong-based Amber Group this year increasing the company’s indirect crypto exposure. Following the news of Temasek writing off its #ftx exposure, GlobalData’s explorer platform, which monitors social media traffic, saw a spike in discussions around the company. Even though Temasek has referred to the industry as nascent it continues to believe in the potential of blockchain and cryptocurrencies.”

As covered, 4,000 of the “world’s largest” companies, “including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform.”

GlobalData’s mission is to help clients “decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.”

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