Venture Capitalists News Hubb
Advertisement Banner
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact
No Result
View All Result
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact
No Result
View All Result
Venture Capitalists News Hubb
No Result
View All Result
Home Venture Capital Funding

Playboy Held All ETH Earned From NFTs — But It Cost Them $5M

admin by admin
March 17, 2023
in Venture Capital Funding


Playboy Group was forced to write off nearly $5 million on ether that it accepted as payment for its NFTs.

In a Thursday filing, the media and lifestyle brand said it has held ETH received for sales of its Rabbitar NFTs, which were released in the fourth quarter of 2021.

Their value has gone down since then, however. As of the end of last year, the carrying value of Playboy’s digital assets fell to about $300,000, down 95% from $6.8 million at the end of the previous year, resulting in impairment charges on its balance sheet.

Overall, the company filed impairment charges worth $4.9 million on its crypto for the 2022 financial year, up from 2021’s $1 million paper losses.

Other companies to have recorded impairment charges on their crypto holdings include MicroStrategy and Jack Dorsey’s fintech firm Block (formerly Square).

Playboy released 11,953 unique 3D rabbit characters as NFTs as a tribute to its founding year 1953. Playboy said the NFTs were created by its Web3 innovation team, which partnered with Possible Studios and art studio WENEW.

OpenSea records 2,798 ETH ($4.9 million) in total volume with around 5,400 unique holders. The current floor price is 0.0703 ETH ($122).

Playboy said it accounts for digital assets as indefinite-lived intangible assets. This means Playboy must record their value as the lowest observable fair value within a reporting period.

“Therefore, negative swings in the market price of [ether] could have a material impact on our earnings and on the carrying value of our digital assets,” the firm said.

“Positive swings in the market price of Ethereum are not reflected in the carrying value of our digital assets and impact earnings only when the [ether] is sold at a gain.”

Ether is down 38% in the last year, but is up nearly 44% in the year-to-date period, according to Blockworks Research.

Playboy separately warned in the filing that the long-term adoption of digital assets is unpredictable. But it expects to continue commercial activities that involve digital assets and cryptocurrencies.

“If we fail to explore and commercialize these new technologies and apply them innovatively to keep our products and services competitive, we may not experience significant growth of our business,“ Playboy said.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.





Source link

Tags: ETHplayboy
Previous Post

India fourth with 73 firms in FT 500 list of high-growth companies in Asia-Pacific

Next Post

Startup20 kickstarts second meeting in Sikkim

Next Post

Startup20 kickstarts second meeting in Sikkim

Recommended

Counterexploit Salvages Stolen Funds From Platypus Hacker

8 months ago

A Practical Guide to Database Management and Querying

4 months ago

Israeli startup landscape collection 2023 edition

8 months ago

From product-tech startup to home services unicorn, the long and winding journey of Urban Company

10 months ago

Sam Bankman-Fried Backtracks on Crypto Regulatory Framework

11 months ago

Crypto funding: Decentralization, privacy at forefront of a $17M week

2 months ago

© Venture CapitaLists News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact

© 2022 Venture Capitalists News Hubb All rights reserved.