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Circle CEO: The company's ARK tokens will be recorded as "Other Income" at zero cost
Odaily Planet Daily News reports that Circle co-founder and CEO Jeremy Allaire responded to analyst questions during tonight’s earnings call.
When asked how ARK tokens belonging to Circle will be accounted for, Jeremy Allaire stated: “When ARC tokens are created, these tokens will be recorded on Circle’s balance sheet at cost, which is zero. Subsequently, after Circle fulfills its obligations under the token pre-sale agreement, we will recognize the value of these tokens as ‘other income,’ which will then be directly reflected in RLDC (revenue minus distribution costs) and adjusted EBITDA.”