Greenlane Holdings said the fair value of its BERA-focused digital asset treasury fell to $16.4 million by the end of the second quarter, far below the portfolio’s $70 million cost basis. Based on those figures, the treasury was marked about 76.6% below what the company had paid for the position.
The Nasdaq-listed company disclosed that it held 81.3 million BERA and equivalent tokens as of June 30, up from 77.7 million at the end of March. Despite the increase in token holdings, the company reported a large fair value loss tied to digital assets during the quarter.
Quarter-end valuation shows steep decline
Greenlane’s second-quarter filing puts the fair value of its BERA treasury at $16.4 million at June 30. That compares with a $70 million cost basis for the portfolio, underscoring how sharply the position has been marked down.
The company also recorded a $19.1 million fair value loss on digital assets for the quarter. Overall, Greenlane posted a net loss of $24.8 million in the period.
Token holdings increased during Q2
While the value of the treasury fell, Greenlane’s exposure to BERA rose over the course of the quarter. The company reported 81.3 million BERA and equivalent tokens at the end of June, compared with 77.7 million at the end of March.
That implies an increase of roughly 3.6 million tokens during the second quarter. The filing indicates that the company expanded its holdings even as the market value of the position deteriorated.
Price weakness weighed on the treasury
The decline in the treasury’s fair value came amid a broader slide in BERA’s market price. According to the report, BERA was down 75.9% year to date and trading near $0.146.
That market weakness helps explain why a larger token balance did not translate into a higher quarter-end valuation. Even with more BERA and equivalent tokens on hand, the company’s reported fair value remained far below cost.
Berachain activity still generated some revenue
Greenlane said it is earning yield from its Berachain position through staking, validator operations, liquidity provisioning and other activities on the network.
Those efforts contributed about $309,000 in digital asset segment revenue during the quarter. The figure shows the company’s treasury strategy is not limited to holding tokens, though that income was small relative to the losses reported for the period.
What comes next
The latest filing provides a snapshot of Greenlane’s BERA exposure as of June 30, including both the size of the holdings and the extent of the markdown against cost. Future results will show whether the company continues to increase its token balance and how changes in BERA’s market price affect the treasury’s reported value.
For now, the confirmed picture from the second quarter is a larger BERA position, modest revenue from Berachain-related activity, and a significant unrealized hit to the portfolio’s value.
Source: crypto.news