VeChain asserts that it has a strong balance sheet.
Leading enterprise blockchain VeChain shared its Q2 financial report on Friday as part of its commitment to transparency.
“As always, we remain dedicated to providing transparency relating to expenses and assets under management at the VeChain Foundation,” the foundation wrote while sharing a link to its balance sheet on Twitter.
The #VeChain Foundation's Q2 2022 Financial Report is now available over at: https://t.co/MhF3iNVJqE
As always, we remain dedicated to providing transparency relating to expenses and assets under management at the VeChain Foundation.#VeFam #Blockchain #Crypto $VET $BTC $ETH
— VeChain Foundation (@vechainofficial) September 30, 2022
The shared balance sheet shows that at the end of Q2, the firm had assets (Bitcoin, Ethereum, VET, Stablecoins) with a total dollar-denominated value of over $535 million. However, it is 44% lower than the value of its reserves at the end of Q1, which sat at about $1.2 billion. Notably, the company attributes this decline mainly to the loss in crypto asset value within this period.
Despite the decline, the firm asserts that it has a solid enough reserve to weather the volatility in the crypto market.
“With a reserve of over half a billion dollars, however, the VeChain Foundation is more than adequately positioned to weather the storm.”
As highlighted by a user, VeChain does not show how much exposure it has to each token. Instead, it just gives the dollar-denominated value at the time, which is bound to fluctuate depending on the market condition and is considerably less transparent.
Notably, the company also shared its P/L sheet or total expenses. The data shows that the company spent most on PR and marketing, followed by SDG projects and legal fees.
Under PR and marketing, the company highlights its $100 million deal with the UFC in June. Additionally, it bears mentioning that the report released on Friday shows that the UFC agreed to receive payment in VET in a show of belief in the token and VeChain.
Meanwhile, the foundation says the reason for its increased legal fees is increased legal consultation as it finalizes establishing its new European headquarters. The company has also seen increased activity and adoption in the region. For example, VeChain was tapped as the Layer 1 blockchain of choice for the UCO network to help trace cooking oil in Europe and aid its conversion to biofuel.
In August, VeChain CEO Sunny Lu asserted that the enterprise blockchain would change the world.
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