Playboy Lost $4.9M on Ether It Accepted as NFT Payments
16 Mar 2023 10:20 PM
The company’s net carrying value of digital assets was $327,000 as of December....
- PLBY Group, the parent company of Playboy, took an impairment loss of $4.9 million on the Ethereum it held last year due to the decline in the broader market prices during the crypto winter.
- The company accepted Ethereum as payments for its “Rabbitars” non-fungible tokens (NFTs) 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, a significant decrease from $1.75 million as of Sept. 30 of last year.
- 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, at any time.
- The company launched its “Rabbitar” NFT project in October 2021, during the peak of the crypto market, and had previously entered into the NFT and blockchain technology industry with its NFT drop called “Liquid Summer” in May 2021.
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The article has a negative sentiment as it discusses the impairment loss of PLBY Group on the Ethereum it held last year due to the decline in the broader market prices during the crypto winter.
What is the reason for PLBY Group's impairment loss on the Ethereum it held last year?
What are Rabbitars and how did PLBY Group accept payments for them?
How does PLBY Group account for its digital assets?
When did PLBY Group launch its Rabbitar NFT project and what was the market condition at the time?
Has Playboy previously entered into the NFT and blockchain technology industry before its Liquid Summer NFT drop in May 2021?