The parent company of Playboy, PLBY Group, has reported an impairment loss of $4.9 million on the Ethereum ($ETH) it held last year, which was received after it accepted the cryptocurrency as a payment method for a non-fungible token (NFT) collection.
Back in 2021, PLBY Group accepted Ethereum as payment for its “Rabbitars” NFT collection, and has seen been holding onto the cryptocurrency on its balance sheet. The value of the digital assets sits at $327,000 as of last year, a significant drop that was caused by a wider crypto market crash. In a filing, the company wrote:
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 company accounts for its digital assets as “indefinite-lived intangible assets,” which are subject to impairment losses if the fair value of the…