- Cryptocurrency investment firm, Ether Capital (NEO:ETHC) reported a C$36.7 million deficit in 2019
- The company invests heavily in the digital currency Ether, which has lost a considerable amount of its value over the last two years
- After reaching its peak of around $1,700 in mid-2018, a single Ether is now worth only $189.41
- Ether Capital believes the ongoing COVID-19 crisis could negatively impact the currency further, which has already lost a third of its value since March 1
- Ether Capital (ETHC) is down 13 per cent, with shares trading for $0.20 and a market cap of $5.3 million
Cryptocurrency investment firm, Ether Capital (NEO:ETHC) is in a C$36.7 million deficit, due to the recent Ether price plunge.
Ether is the currency associated with the Ethereum blockchain platform. It is considered one of the top performing digital currencies, alongside Bitcoin.
However, the price of Ether has fallen substantially over the past two years. After reaching its peak of around $1,700 in mid-2018, a single Ether is now worth only $189.41.
As a substantial investor in Ether, the company has seen its assets substantially reduce in value over the past year. This asset devaluation is the cause of the company’s current deficit.
As of today, the company owns $6.5 million worth of Ether. It is worth noting that the company has not sold or traded its Ether, meaning that the loss has not resulted in any real cash-loss for the company.
CEO of Ether Capital, Brian Mosoff, remains confident about the company’s prospects.
“Despite volatile markets in the blockchain space during the year, we saw impressive growth in the Ethereum ecosystem in 2019.
“We continue to believe that staking and decentralized finance opportunities will gain traction as important milestones for our thesis this year,” he said.
Furthermore, Ether Capital claims that recent market volatility, caused by the COVID-19 pandemic, has further impacted the price of Ether.
Since March began, Ether has lost a third of its value, further impacting the value of Ether Capital’s principal asset.
Ether Capital (ETHC) is down 13 per cent, with shares trading for $0.20 at 12:07pm EST.