Circle CEO Jeremy Allaire Discusses Accounting for ARK Tokens

Circle co-founder and CEO Jeremy Allaire addressed analysts' questions during an earnings call this evening. According to Odaily, when asked about the accounting treatment for ARK tokens attributed to Circle, Allaire explained that these tokens will initially be recorded on Circle's balance sheet at cost, which is zero. Once Circle fulfills its obligations under the token presale agreement, the value of these tokens will be recognized as 'other income.' This value will then be reflected in RLDC (revenue less distribution costs) and adjusted EBITDA.