PLBY Group (PLBY), the mother or father firm of Hugh Hefner’s Playboy, stated it took an impairment lack of $4.9 million on the Ethereum it held final yr, as crypto winter noticed a major decline within the broader market costs.
The approach to life and media firm stated that it accepted Ethereum as funds for its “Rabbitars” non-fungible tokens (NFTs) launched in 2021, which it holds in its stability sheet as digital belongings, in line with an annual submitting on Thursday. The worth of the digital belongings sits at $327,000 as of final yr, the submitting stated.
A earlier submitting exhibits that the corporate’s digital belongings have been value $1.75 million as of Sept. 30 of final yr.
The corporate defined that the corporate accounts for its digital belongings as “indefinite-lived intangible belongings,” that are topic to impairment losses if the truthful worth of the belongings fall beneath their carrying worth, at any time. The impairment losses that the corporate takes on the digital belongings can’t be recovered, even when the truthful worth of the belongings rise after taking the impairment losses.
“The market worth of 1 Ethereum in our principal market ranged from $964 – $3,813 in the course of the yr ended December 31, 2022, however the carrying worth of every Ethereum we held on the finish of the reporting interval displays the bottom worth of 1 Ethereum quoted on the lively alternate at any time since its receipt,” in line with the submitting. “Due to this fact, unfavourable swings available in the market worth of Ethereum may have a cloth influence on the corporate’s earnings and carrying worth, whereas solely time an increase in costs will influence the corporate’s earnings positively, is when the Ethereum held within the stability sheet, are offered at a achieve,” the submitting stated.
The corporate launched its “Rabbitar” NFT challenge in October 2021, in the course of the peak of the crypto market. Ether, the native token of Ethereum, misplaced about 60% in worth since October of 2021, in line with TradingView information.
Earlier in 2021, Playboy entered into NFT and blockchain know-how business with its NFT drop referred to as “Liquid Summer season,” which is a group of digital artworks created in collaboration with the artist Slimesunday. The gathering which minted in Might, 2021 options archival images of Playboy mannequin Lenna Sjööblom – the so-called “First Woman of the Web.”
Nevertheless, these NFT drops weren’t the primary foray for the corporate into the world of digital belongings. In 2018, Playboy TV started accepting bitcoin funds. In June, bitcoin funds expanded to Playboy.com.