OnlyFans’ parent company, Fenix International, recently filed an accounting statement for 2022, which reveals that the company invested part of its working capital into ETH.
Although the firm didn’t reveal how much Ether it held, it did imply that it had incurred a loss at the end of the reporting period (November 2022).
OnlyFans Sees 21% Increase in Profits Despite Making a Loss on ETH
Fenix International is the owner of the digital subscription service OnlyFans, a platform typically associated with adult video content.
In a recent financial statement filed with Companies House in the UK, the firm reported that:
“During the year, the Group diversified part of its working capital into cryptocurrency (“Ethereum” or “ETH”). There are no limitations or restrictions on the Group’s ability to sell the cryptocurrency assets. “
The statement doesn’t give a breakdown of Fenix’s holdings or reveal the exact value of its crypto investment. However, it does state that “the asset has been impaired to its fair value as at the year-end.”
This suggests that the OnlyFans ETH was worth less at the end of November than when it was purchased. This is hardly surprising, however. In the 365-day period covered by the recent filing, ETH lost over 70% of its value, falling from $4,448 to $1,217.
Yet for the OnlyFans owner, losing money on Ethereum appears to have done little to dent its revenue.
Overall, sales for the year rose 17% to $1.1 billion. Meanwhile, the company registered pre-tax profits of $525 million, a 21% increase from the previous year.
But why is a company whose primary business is adult content streaming investing in crypto in the first place?
Why do Businesses Invest in Crypto?
Aside from specialized investment firms and hedge funds, many companies have incorporated cryptocurrencies into their investment portfolios.
One noteworthy example is Tesla, which became one of the first household-name businesses to hold Bitcoin in its corporate treasury back in 2021.
The automaker then dumped three-quarters of its BTC in the second quarter of 2022. And given the asset’s rocky price performance in the year’s second half, that was probably a smart move. A January filing with the Securities and Exchange Commission (SEC) reveals that Tesla recorded a $204 million loss on its Bitcoin holdings during 2022.
But CEO Elon Musk has made no secret of his faith in crypto. As he explained last year, Tesla is “certainly open to increasing [its] Bitcoin holdings in the future,” and he insisted that the decision to sell “should not be taken as some verdict on Bitcoin.”
Other companies that have made high-profile crypto investments include the American software company MicroStrategy and the Chinese digital technology giant Meitu.
MicroStrategy first started investing in crypto in 2020, when it purchased $250 million worth of Bitcoin. At the time, CEO Michael J. Saylor explained the rationale behind the firm’s decision:
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders. This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
Since then, the company has gone on to become one of the largest corporate Bitcoin holders in the world. It now possesses over 150,000 Bitcoin, worth around $3.91 billion at current prices.
As a result of a BTC price crash earlier this month, MicroStrategy docked an eye-watering loss of $600 million on the value of its investments. However, the firm hasn’t signaled any intention to reduce its position.
Meitu, on the other hand, has favored ETH as a treasury investment. In its annual report for 2022, the firm reported Ether holdings valued at $37.3 million and Bitcoin worth $15.6 million. Accounting for market gains since then, Meitu could currently be sitting on over $50 million worth of ETH alone.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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