Playboy’s parent company, PLBY Group, reported a $4.9 million impairment loss on the Ethereum it held last year due to the crypto winter. The lifestyle and media company accepted Ethereum as payment for its “Rabbitars” NFT launched in 2021, which it holds in its balance sheet as digital assets. The value of the digital assets sits at $327,000 as of last year, according to an annual filing. PLBY Group’s impairment loss is a reminder of the risks associated with investing in digital assets, as the crypto market continues to be volatile.
The company accounts for its digital assets as indefinite-lived intangible assets, which are subject to impairment losses if the fair value of the assets fall below their carrying value. As of September 30th of last year, the company’s digital assets were worth $1.75 million. If the fair value of the assets decreases, the company must take an impairment loss, which cannot be recovered even if the fair value of the assets rises again. This means that the company must be careful when investing in digital assets, as any losses taken may not be recovered.
Cryptocurrency company Ethereum has filed a report for the year ended December 31, 2022, revealing that the market price of one Ethereum ranged from $964 – $3,813 during the period. The carrying value of each Ethereum 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. This means that negative swings in the market price of Ethereum could have a material impact on the company’s earnings and carrying value. However, the company will only benefit from a rise in prices when the Ethereum held in the balance sheet are sold at a gain.
Rabbitar, a new Non-Fungible Token (NFT) project, was launched in October 2021, during the peak of the crypto market. Despite the market downturn, Rabbitar has continued to gain traction, offering users a unique way to collect, trade, and showcase digital art. The project is built on the Ethereum blockchain, allowing users to securely store and trade their digital assets. With its innovative approach to digital art, Rabbitar is revolutionizing the way people interact with digital art, providing a secure and transparent platform for users to showcase their collections. With its growing popularity, Rabbitar is set to become the go-to platform for digital art enthusiasts.
Playboy has entered the NFT and blockchain technology industry with its “Liquid Summer” NFT drop. This collection of digital artworks was created in collaboration with the artist Slimesunday and features archival photographs of Playboy model Lenna Sjööblom. The collection was minted in May 2021 and is the first of its kind from Playboy, marking the company’s foray into the world of NFTs and blockchain technology. The collection is a unique way to celebrate the iconic Playboy model and her legacy, while also introducing a new way to collect and trade digital art. With this move, Playboy is embracing the future of digital art and the potential of blockchain technology.”
Playboy TV and Playboy.com have been accepting Bitcoin payments since 2018, and now they have taken their foray into the world of digital assets a step further with NFT drops. The company has released a series of digital collectibles, including limited edition art, music, and video content. These NFTs are available for purchase on the Ethereum blockchain, and they offer a unique way for fans to own a piece of Playboy history. With these NFT drops, Playboy is continuing to innovate and embrace the digital world, offering fans a new way to engage with the brand.
