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Playboy’s Crypto Catastrophe: $4.9M Loss on Ethereum NFTs

PLBY Group the parent company of Playboy has announced a $4.9 million impairment loss

PLBY Group, the parent company of Playboy, has announced a $4.9 million impairment loss on the Ethereum it held last year. The loss was incurred due to the significant decline in market prices during the crypto winter, according to the company’s annual filing.

Playboy accepted Ethereum as payment for its “Rabbitars” non-fungible tokens (NFTs), which were launched in 2021. These NFTs are held in the company’s balance sheet as digital assets, with a value of $327,000 as of last year.

However, a previous filing showed that the company’s digital assets were worth $1.75 million as of September 30, 2021.

The company accounts for its digital assets as “indefinite-lived intangible assets,” which are subject to impairment losses if their fair value falls below their carrying value at any time. These impairment losses cannot be recovered, even if the fair value of the assets rises later.

The market price of one Ethereum ranged from $964 to $3,813 during the year ended December 31, 2022, according to the filing. The carrying value of each Ethereum held by Playboy reflects the lowest price quoted on the active exchange at any time since its receipt.

This means that negative swings in the market price of Ethereum can have a material impact on the company’s earnings and carrying value.

Playboy launched its “Rabbitar” NFT project in October 2021, during the peak of the crypto market. However, Ether, the native token of Ethereum, lost about 60% in value since then. The company’s previous NFT drop, “Liquid Summer,” which features digital artworks created in collaboration with artist Slimesunday, was launched in May 2021.

In 2018, Playboy TV began accepting Bitcoin payments, and in June, Bitcoin payments expanded to These forays into the world of digital assets demonstrate the company’s interest in blockchain technology.


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