Playboy reveals it lost $4.9 million on its Ethereum holdings caused by the 2022 crypto winter.
According to the annual filing released by PLBY Group, the company behind Playboy has lost close to $5 million from the sale of its NFTs.
Playboy sold non-fungible tokens dubbed Rabbitar for Ethereum (ETH), leading to impairment loss when prices nosedived.
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Its filing stated that the impairment losses were irrecoverable even with a subsequent increase in value. Since October, the Ethereum token’s price has gone by 60%.
The company revealed that during 2022, its “digital subscriptions and content segment” made almost $19 million in revenue and had $13 million in operating losses, from which close to $5 million were tied to “non-cash impairment of our crypto assets and certain other assets.”
When commenting on the loss, PLBY Group noted:
Negative swings in the market price of Ethereum could have a material impact on the company’s earnings and carrying value, while the only time a rise in prices will impact the company’s earnings positively, is when the Ethereum held in the balance sheet, is sold at a gain.
Rabbitar NFTs were launched in October 2021 at the height of the crypto market. There were 11,953 unique NFTs in the collection.
Playboy made its first foray into NFTs in May 2021 with its Liquid Summer collection. The collection was created in collaboration with digital artist Slimesunday. It featured archival images of Playboy model Lenna Sjööblom, popularly called the First Lady of the Internet. The collection consisted of six unique images of the model.
The company’s first dalliance with the blockchain world and digital assets was in June 2018, when it began accepting Bitcoin (BTC) as payment for its products.