Eightco Holdings reports $207.6M loss on Worldcoin holdings

Eightco Holdings reported a cumulative unrealized loss of 207.6 million dollars on its Worldcoin WLD token position as of June 30, following the deterioration of its primary customer, which accounted for about 99% of its operating revenue. The company held 283.45 million WLD with a cost basis of 322.7 million dollars and a fair value of 115.1 million dollars, representing 50.5% of its 228 million dollar digital-asset portfolio. No operating revenue was reported from this portfolio during the period. As of August 5, Eightco's WLD balance increased to 301.97 million tokens, but the current value is approximately 87.9 million dollars, about 234.8 million dollars below its cost basis. The operating issues are pressing, as Eightco's subsidiary Forever 8 indicated that its main customer's financial condition worsened, leading to unauthorized disposal of company-funded inventory. Consequently, Eightco suspended new orders and inventory purchases, resulting in a 7.8 million dollar credit-loss allowance. Despite these challenges, Eightco reported 148.8 million dollars in near-cash liquidity at the end of the quarter. The company has relied heavily on equity issuance, raising about 216 million dollars from newly issued shares in the first half of the year, increasing total shares outstanding by 109%. Eightco received a Nasdaq bid-price deficiency notice and has until February 1, 2027 to regain compliance.