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Eightco posts $207.6M unrealized loss on Worldcoin WLD as customer revenue falters
Worldcoin token WLD made up 50.5% of Eightco’s $228.0 million digital-asset portfolio, while its operating subsidiary said its dominant customer’s finances worsened and led it to halt new fulfillment and inventory buys.
Eightco Holdings reported a $207.6 million cumulative unrealized loss on its Worldcoin WLD token position as of June 30, according to its Aug. 7 quarterly filing, after the company said its primary operating customer deteriorated. The filing showed Eightco held 283.45 million WLD with a $322.7 million cost basis and $115.1 million fair value, and noted the operating customer accounted for about 99% of operating revenue.
Eightco said WLD was the largest part of its portfolio, representing 50.5% of its $228.0 million digital-asset holdings. The company reported no operating revenue from the portfolio during the period, and said the figures reflected a June 30 accounting snapshot rather than a current mark of its treasury.
In an Aug. 6 update, Eightco said its operating subsidiary Forever 8 faced tighter conditions because its dominant customer’s financial condition worsened, and the customer disposed of company-funded inventory without authorization. Forever 8 suspended new order fulfillment and stopped buying inventory for the relationship, with the customer stress contributing to a $7.8 million credit-loss allowance, including $2.6 million against trade receivables and a fully reserved $5.2 million receivable tied to the inventory disposition.
Despite the accounting loss tied to WLD, Eightco said the filing does not establish an immediate need to sell WLD or issue more stock. The company reported $148.8 million of near-cash liquidity at quarter-end, including $11.0 million in cash, $50.9 million in short-term government securities and money-market funds, and $86.9 million in stablecoins, and management said there was no substantial doubt about its ability to continue as a going concern for at least 12 months.