Investment firm Fidelity has written off the original value of its Twitter shares following Elon Musk’s takeover of the social network.
As per appropriate documents of the Fidelity Blue Chip Growth Fund for November 2022, the investment firm devalued the present value of its Twitter investment by more than 50%.
A depreciation is the reduction of an asset on a company’s books. This usually occurs when the current market value of an asset falls below the actual purchase price.
In October 2022, Fidelity’s Twitter stock had a market value of $19.66 million, but that has since dropped to just $8.63 million. Ironically, Fidelity still had Musk’s October 2022 takeover of Twitter for $316 million co-financed.
Fidelity owns Twitter through a holding company, X Holdings I Inc., set up specifically to acquire the social network.
Musk’s Twitter purchase hasn’t been without controversy thus far, however, as the Tesla boss has caused a lot of excitement and misunderstandings with his previous decisions. The associated reputational damage is likely to prompt other investors to devalue their Twitter stock.
Among those backers is market-leading cryptocurrency exchange Binance, which is also involved in buying Musk, along with other big names like Fidelity and Sequoia.
Fidelity has not yet responded to an inquiry from Cointelegraph as of press time.
