Playboy, one of the most recognizable names in the adult entertainment industry, disclosed a significant loss of $4.9 million on its Ether (ETH) holdings, which it earned from a collection of non-fungible tokens (NFTs) launched in late 2021. The disclosure came in a presentation from the parent company, PLBY Group, on March 18, 2023.
The NFT collection, called Rabbitars, launched in October 2021, just before the crypto market peaked. Since then, the price of Ether has fallen by around 60% in line with the broader market decline, and as of December 31, 2022, the value of Playboy cryptocurrencies is $327,000.
According to the filing, PLBY Group suffered an impairment loss of $4.9 million in 2022 as a result of falling cryptocurrency prices. Impairment losses are counted as unrecoverable, even if the fair value of digital asset holdings increases after the losses are recorded. The market price of Ether ranged from $964 to $3,813 during 2022. Still, the book value of each Ether held by PLBY at the end of the reporting period reflects the lowest price of an Ether traded on the active exchange at any time. from its reception.
The company statement further explained that positive swings in Ether’s market price are not reflected in the book value of its digital assets and affect earnings only when Ethereum is sold at a profit. PLBY’s NFT collection, Rabbitars, featured a variety of different types of NFTs, including a series of original art, limited-edition collectibles, and unique digital assets.
The Playboy brand is one of the most recognizable in the world, and their Rabbitars collection was highly anticipated by NFT collectors and Playboy enthusiasts alike. The collection was designed to be a unique and exciting way for fans to interact with Playboy’s iconic brand and its rich history.
The loss suffered by PLBY Group highlights the risks associated with investing in NFTs, which remain highly speculative despite their growing popularity. The NFT market is still in its early stages and the future of the industry remains uncertain. However, it is clear that both companies and investors must be prepared for the potential risks associated with investing in NFTs.
Despite the loss, Playboy remains committed to the NFT market and will likely continue to explore opportunities in the space. The NFT market has shown significant growth potential, and as the industry continues to mature, Playboy may find new ways to leverage its iconic brand to drive value and create unique experiences for its fans.