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- The VeChain Foundation’s financial report for the second quarter of 2022 shows that it holds $535 million in crypto reserves.
- The company’s crypto valuation for Q2 2022 is 44% lower than Q1 2022.
On Friday, top enterprise blockchain VeChain released its second quarter 2022 financial report as part of its commitment to transparency in the management of its business. One of the highlights is that VeChain has $535 million worth of stablecoins, VET, BTC, and ETH reserves.
VeChain asserted that it remains a leader in corporate adoption in the public space of blockchain despite considerable headwinds affecting the global economy this year. He further revealed that he has maintained a healthy balance sheet with sufficient reserves of crypto assets, which will be enough to support the growth and upgrade of VeChain Thor in the years to come.
The #VeChain The Foundation’s second quarter 2022 financial report is now available at: https://t.co/MhF3iNVJqE
— VeChain Foundation (@vechainofficial) September 30, 2022
However, its total reserve asset fell 44% from the Q1 2022 report. The company said the drop in the value of crypto assets is the result of bearish conditions in the crypto market. Currently, VeChain’s stablecoin reserves stand at 60,404,839. Additionally, the foundation has a combined total of 474,887,226 tokens split between VET, BTC, and ETH.
However, VeChain added that its crypto reserves would be sufficient to survive the current crypto winter. “The VeChain Foundation is well positioned to weather the storm in the crypto market with its reserve of over half a billion dollars.”
The report further indicates that VeChain remains focused on creating tools that solve real-world problems, promote business activities, drive economic growth around the world, and provide a sustainable foundation for digital transformation. VeChain has recently added new partners to its network, with UCO Network and TruTrace being its latest partners.
The report also indicates that VeChain will continue to seek collaborations with partners who have disruptive and innovative applications. Data from VeChain’s profit and loss sheet indicates that its highest expenses are for public relations and marketing, while SDG projects and legal fees are its second and third highest expenses, respectively.
The PR and marketing section of the report pointed to VeChain’s $100 million deal with the mixed martial arts organization (the Ultimate Fighting Championship, UFC) four months ago. It is worth mentioning that the UFC has agreed to receive their payment from the partnership agreement in VET tokens. Thus, proving that the UFC is a strong supporter of VeChain and its native token.
The foundation explained the increase in legal fees, saying it was spending more on legal advice during the final stages of establishing a new European headquarters. The company has witnessed a flurry of activity and adoption across the European continent. Hence the need to have a headquarters for this region.
The most recent was the UCO network’s use of the VeChain blockchain to trace cooking oil across Europe to help convert these oils into biofuel. The top shoe brand (Fibonacci Footwear) and the top ginseng snack producer (Shan) are two popular brands using VeChain blockchain technology. In an interview in August, VeChain CEO Sunny Lu claimed that enterprise blockchain is ready to change the world.