Funding agency Constancy has written down the worth of its preliminary stake in Twitter following its funding of Elon Musk’s takeover of the social media platform.
Based on a submitting of the Constancy Blue Chip Progress Fund in November 2022, the agency has written down the carrying worth of its Twitter funding by greater than 50 p.c. The submitting was first reported by Axios.
A write-down is a discount within the worth of an asset on an organization’s steadiness sheet. This usually happens when the asset’s market worth falls beneath its guide worth, which is the worth at which the asset is recorded on the steadiness sheet.
Constancy’s preliminary stake in Twitter was valued at $19.66 million in October 2022 and has now been written down to simply $8.63 million. Based on Market Insider, Constancy put ahead $316 million to assist Musk’s bid to take over Twitter in October 2022.
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Constancy holds its Twitter investments by means of its mutual funds in X Holdings I Inc., a holding firm that Musk used as a part of his Twitter takeover bid.
Musk’s Twitter takeover has been a controversial matter, marred by layoffs of workers and a plethora of operational adjustments on the social media big. Numerous experiences speculate that different funding companies might follow-suit in writing-down the worth of Twitter holdings.
Cryptocurrency change Binance was amongst various firms to place funds in direction of Musk’s Twitter acquisition. The corporate dedicated $500 million to co-invest in Twitter alongside the likes of Constancy, Sequoia Capital Fund and 18 different firms.
Cointelegraph has reached out to Constancy to establish the main points of its Twitter holdings write-down.
