Funding agency Constancy has written down the worth of its preliminary stake in Twitter after financing Elon Musk’s acquisition of the social media platform.
In response to a November 2022 Constancy Blue Chip Development Fund assertion, the corporate has diminished the e-book worth of its funding in Twitter by greater than 50%. Axios was the primary to report this info.
Depreciation is a discount within the worth of an asset on an organization’s steadiness sheet.. This often occurs when the market worth of the asset falls under its e-book 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 is now down to only $8.63 million. In response to Market Insider, Constancy put up $316 million to assist Musk’s bid to take over Twitter in October 2022.
Constancy maintains its investments in Twitter via its funding funds in X Holdings I Inc, a holding firm that Musk used as a part of his takeover bid for Twitter.
Musk’s acquisition of Twitter has been a controversial matter, clouded by layoffs and a number of operational adjustments on the social media large. A number of stories speculate that different funding corporations will comply with swimsuit and scale back the worth of their Twitter holdings.
Cryptocurrency trade Binance was one of many corporations that offered funds for Musk’s acquisition of Twitter. The corporate dedicated $500 million to co-invest in Twitter together with Constancy, Sequoia Capital Fund and 18 different corporations.
BoxNews has contacted Constancy for particulars of the redemption of its Twitter holdings.
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