Eightco Holdings Faces $207M Loss on Worldcoin Treasury

Eightco Holdings reported a cumulative unrealized loss of $207.6 million on its Worldcoin position as of June 30. The firm held over 283 million WLD tokens with a cost basis well above their fair value. Since then, the token balance has grown slightly, but falling market prices have pushed the paper loss even higher. This creates a difficult situation for the company as it manages its digital asset treasury during a market downturn.

At the same time, Eightco faces serious operational challenges in its core business. Its primary operating subsidiary lost its dominant customer, which generated nearly all of its operating revenue. The customer situation deteriorated after unauthorized inventory dispositions, forcing Eightco to halt order fulfillment and book millions in credit losses. Management warned that revenue from this segment could drop sharply or disappear entirely.

Despite the large crypto paper loss and business hurdles, Eightco reported a strong near cash liquidity buffer including cash, government securities, and stablecoins. The company has also relied heavily on issuing new shares to raise funds, which doubled its total share count and led to a recent compliance notice from Nasdaq. Investors are now watching closely to see how the firm balances its token treasury and operational recovery moving forward.