PLBY Group announced that it suffered a loss of $4.9 million from the depreciation of its Ethereum assets in 2022.

Negative fluctuations in the market price of Ethereum could have a significant impact on the company’s profits, the publishers of Playboy magazine said. Digital assets in 2021 and 2022 consisted of ether, which was received from the sale of Rabbitar tokens.

“The impairment charge on our digital assets for 2022 and 2021 was $4.9 million and $1 million, respectively,” the annual financial report says.

The value of the group’s digital assets at the end of 2022 was $327,000. For comparison, in 2021, PLBY received $7.8 million in digital assets from the sale of NFTs.

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PLBY explained that they account for their digital assets as “intangible with an indefinite life.” Such damages cannot be recovered.

“The market price of a single ether in the market ranged from $964 to $3,813 during 2022, but the book value of ether at the end of the reporting period was the lowest since the acquisition,” the report says.

Playboy previously said that it plans to open access to the MetaMansion virtual mansion in The Sandbox metaverse by the end of 2023. The virtual mansion will be available to users who are part of the Rabbitars community, created to connect owners of the NFT Playboy Rabbitars, the company’s first major collectible token project. Now the project team is discussing a plan for accessing the virtual world of users who do not have NFT.

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