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The dramatic decline in X’s valuation, as reported by Fidelity, paints a concerning picture for Elon Musk’s $44 billion acquisition of the former Twitter platform.

Fidelity, a key investor in Elon Musk’s acquisition of Twitter (now X), has marked down its holding by 78.7% as of August 2024,Based on realese from Fidelity’s Blue Chip Growth Fund.

This implies a current valuation of X at approximately $9.4 billion, less than a quarter of its $44 billion purchase price. Fidelity’s Blue Chip Growth Fund now values its stake in X at about $4.18 million, down from an initial investment of $19.66 million. The valuation has been steadily decreasing, with Fidelity valuing its shares at about $5.5 million as of July 2024.

Neither Fidelity nor X have provided immediate comment on this valuation adjustment.