PLBY Group PLBY, the parent company of Hugh Hefner’s Playboy, reported an impairment loss of $4.9 million on its Ethereum ETH/USD holdings.
What Happened: The company accepted Ethereum as payment for the “Rabbitars” non-fungible tokens, or NFTs, that were launched in 2021.
The assets associated with these NFTs are now worth $327,000 as per its last annual filing on Thursday.
In October 2021, the company launched its “Rabbitar” NFT project at the peak of the crypto market. However, since then ETH has lost roughly 60% of its value.
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“The market price of one Ethereum in our principal market ranged from $964 – $3,813 during the year ended December 31, 2022, but the carrying value of each Ethereum we held at the end of the reporting period reflects the lowest price of one Ethereum quoted on the active exchange at any time since its receipt,” the filing said.
“Therefore, negative swings in the market price of Ethereum could have a material impact on the company’s earnings and carrying value, while only time a rise in prices will impact the company’s earnings positively, is when the Ethereum held in the balance sheet, are sold at a gain,” the filing added.
Price Action: At the time of writing, ETH was trading at $1,717, up 3.43% in the last 24 hours, according to Benzinga Pro data.
Read More: Bitcoin, Ethereum, Dogecoin Rise Amid Tight Labor Market: Analyst Says Cryptoverse Could ‘Look More Attractive’ Than Equities
This article has been originally published at: https://www.benzinga.com/markets/cryptocurrency/23/03/31393781/playboy-incurs-loss-of-4-9m-on-its-ethereum-holdings-from-nft-collection?SNAPI