Fidelity downsizes value of its Twitter holdings

Investment steadfast Fidelity has written down the worth of its archetypal involvement successful Twitter pursuing its backing of Elon Musk’s takeover of the societal media platform.

According to a filing of the Fidelity Blue Chip Growth Fund successful November 2022, the steadfast has written down the carrying worth of its Twitter concern by much than 50 percent. The filing was archetypal reported by Axios.

A write-down is simply a simplification successful the worth of an plus connected a company’s equilibrium sheet. This typically occurs erstwhile the asset's marketplace worth falls beneath its publication value, which is the worth astatine which the plus is recorded connected the equilibrium sheet.

Fidelity’s archetypal involvement successful Twitter was valued astatine $19.66 cardinal successful October 2022 and has present been written down to conscionable $8.63 million. According to Market Insider, Fidelity put forward $316 cardinal to assistance Musk’s bid to instrumentality implicit Twitter successful October 2022.

Related: Twitter adds BTC and ETH terms indexes to hunt function

Fidelity holds its Twitter investments done its communal funds successful X Holdings I Inc., a holding institution that Musk utilized arsenic portion of his Twitter takeover bid.

Musk’s Twitter takeover has been a controversial topic, marred by layoffs of staff and a plethora of operational changes astatine the societal media giant. Various reports speculate that different concern firms whitethorn follow-suit successful writing-down the worth of Twitter holdings.

Cryptocurrency speech Binance was among a fig of companies to enactment funds towards Musk’s Twitter acquisition. The institution committed $500 million to co-invest successful Twitter alongside the likes of Fidelity, Sequoia Capital Fund and 18 different companies.

Cointelegraph has reached retired to Fidelity to ascertain the details of its Twitter holdings write-down.