Twenty One Capital reported a profit of $1.087 billion in the third quarter, but about 60% of it has now vanished.
The Texas-based company disclosed Friday that the profit came from Bitcoin’s appreciation. Bitcoin has continued to fall since the quarter ended on September 30, and the Bitcoin it holds is now worth about $700 million less than its purchase cost.
· The profit figure was as of quarter-end, and the subsequent price drop directly erased most of it, showing that the reported profit has diverged from the current value of its holdings.
In its next quarterly report, would you rather see its cost basis or realized gains and losses?
The Texas-based company disclosed Friday that the profit came from Bitcoin’s appreciation. Bitcoin has continued to fall since the quarter ended on September 30, and the Bitcoin it holds is now worth about $700 million less than its purchase cost.
· The profit figure was as of quarter-end, and the subsequent price drop directly erased most of it, showing that the reported profit has diverged from the current value of its holdings.
In its next quarterly report, would you rather see its cost basis or realized gains and losses?
