Eightco Posts $207M Worldcoin Loss After Major Customer Collapse

Eightco Holdings reported a $207.6 million cumulative unrealized loss on its Worldcoin (WLD) holdings at June 30 in its Aug. 7 quarterly filing. The company attributed the accounting deficit to deterioration in its primary customer relationship, which generated roughly 99% of operating revenue and disposed of company-funded inventory without authorization, prompting an operational pullback and a credit-loss allowance.

At quarter end Eightco held 283.45 million WLD tokens with a $322.7 million cost basis and a $115.1 million fair value, creating the reported $207.6 million paper deficit. WLD accounted for 50.5% of the company’s $228.0 million digital-asset portfolio.

The company later reported its WLD balance had risen to 301.97 million tokens as of Aug. 5. The filing did not disclose the cost or funding source for the additional 18.52 million tokens, leaving the aggregate cost basis for the larger position undetermined.

Forever 8, Eightco’s operating subsidiary, reported the customer relationship had worsened and suspended new order fulfillment. The subsidiary also stopped purchasing inventory tied to the customer after the client disposed of company-funded stock without authorization.

The filing recorded a $7.8 million credit-loss allowance related to the customer issue, including $2.6 million against trade receivables and a fully reserved $5.2 million receivable tied to the unauthorized inventory disposition. Management warned Forever 8 revenue could be materially reduced or eliminated going forward.

Eightco reported $148.8 million of near-cash liquidity at June 30, consisting of $11.0 million in cash, $50.9 million in short-term government securities and money-market funds, and $86.9 million in stablecoins. The company used $9.7 million of cash in operations during the first half of the year and stated there was no substantial doubt about its ability to continue as a going concern for at least 12 months.

The filing showed Eightco raised roughly $216.0 million of net proceeds in the first half from 214,998,030 newly issued shares. Total shares outstanding increased about 109%, from 205.6 million at year-end to 429.8 million. On Aug. 5 the company received a Nasdaq bid-price deficiency notice and has until Feb. 1, 2027 to regain compliance.

The filing did not establish an immediate requirement to liquidate WLD holdings or to issue additional shares. The report reflects a June 30 accounting snapshot; market prices and the company’s token balance have changed since that date. Unrealized losses represent the difference between an asset’s cost basis and reported fair value and do not affect cash unless the assets are sold.