PLBY Group, the parent company of Playboy, booked an impairment loss on Ethereum it received as payment for the Rabbitars NFT collection Rabbitars. This is according to the 2022 filings for the SEC.
The company released Rabbitars in October 2021. Since then the second-largest cryptocurrency by market capitalization has fallen by about 60%.
As of December 2022, the net carrying value of the company’s digital assets stood at $327,000. By the end of the third quarter this measure was estimated at $1.75 million.
PLBY Group accounts Ethereum as “intangible assets with indefinite useful life.”
Under the rules, this category is subject to impairment losses when fair value falls below carrying amount. Losses are not recoverable when fair value exceeds carrying amount.
Negative price movements in Ethereum could have a material impact on the company’s earnings, the filing notes.
In 2018, Playboy TV allowed payment for exclusive content in cryptocurrencies.
Playboy released a Miami Beach-themed NFT collection.
This was preceded by launching an archive of photos as non-fungible tokens on the Nifty Gateway marketplace.
Playboy announced the creation of its own metaverse, MetaMansion, by the end of 2023.