OnlyFans parent company reports ether holdings, impairment loss

Quick Take

  • OnlyFans’ parent company Fenix International invested a portion of its working capital into the cryptocurrency ether and reported an impairment loss for the year ending November 2022.
  • The firm joins companies such as MicroStrategy, SpaceX and Tesla in disclosing purchases of crypto assets.

Fenix International, the UK-based parent company of content subscription giant OnlyFans, revealed it invested a portion of its working capital into ether, the second largest cryptocurrency by market cap, while reporting revenues of over $1 billion for the first time.

"During the year, the Group diversified part of its working capital into a cryptocurrency asset ('Ethereum' or 'ETH')," the company's latest accounts, made up to Nov. 30, 2022, and filed with UK corporate registry Companies House on Aug. 24, stated.

"There are no limitations or restrictions on the Group’s ability to sell the cryptocurrency assets," the filing added.

The addition was disclosed under $19.89 million of intangible asset purchases within its financial statements. However, the company also reported a total impairment loss of $8.46 million. "The asset has been impaired to its fair value as at the year end," it noted. The price of ether fell nearly 75% over the period from $4,637 to $1,217, according to CoinGecko data.

ETH/USD price chart December 2021 to November 2022. Image CoinGecko.

ETH/USD price chart December 2021 to November 2022. Image CoinGecko.

OnlyFans, launched in 2016 and known for its adult material, has become a popular way for creators to make money by selling content to subscribers.

Its popularity surged further last year, with over 50 million new users registering and the site welcoming over a million new content creators. Users spent $5.5 billion on the platform in 2022, with the company reporting $1.1 billion in sales for the year as pre-tax profits jumped to $525 million, according to the filing.

OnlyFans joins MicroStrategy, SpaceX and Tesla in buying crypto assets

OnlyFans' owner joins companies such as MicroStrategy, SpaceX and Tesla in disclosing purchases of crypto assets.

MicroStrategy became the first listed company to buy bitcoin as part of its capital allocation strategy in August 2020. Its most recent set of purchases in July, of several over the last two years, added 467 bitcoin ($12 million) to its holdings, bringing MicroStrategy's total to 152,800 bitcoin ($4 billion).

However, given the volatile nature of cryptocurrencies, MicroStrategy said it had an impairment loss of $24.1 million during the second quarter, though significantly down from the $917.8 million it registered during the same period in 2022.

Tesla, under the stewardship of CEO Elon Musk, was another to hit the headlines after purchasing $1.5 billion worth of bitcoin during the 2021 bull run. However, as the bear market took hold the following year, Tesla sold 75% of its holdings, citing liquidity concerns due to COVID shutdowns in China.

A report from the Wall Street Journal last week said another of Elon Musk's companies, SpaceX, wrote down the value of bitcoin it owns by a total of $373 million in 2021 and 2022. The WSJ also reported SpaceX had sold bitcoin, without specifying how much or when.

OnlyFans' crypto ventures

It's not the first time OnlyFans has ventured into the crypto world, with the subscription platform unveiling support for verified NFT profile pictures in February 2022, minted on the Ethereum blockchain. Two former OnlyFans executives also launched Zoop, a platform for trading NFT playing cards featuring celebrities and influencers, a few months later. 

Last week, OnlyFans creators flocked to the much-hyped social app, hoping to cash in on the latest crypto craze based on the new Ethereum Layer 2 network Base, incubated by crypto exchange Coinbase.

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