PLBY Group, the publisher of Playboy magazine, has reported a loss of $4.9 million due to the depreciation of its Ethereum assets in 2022.
The company’s profits are at risk from negative fluctuations in the market price of Ethereum. The digital assets of PLBY Group in 2021 and 2022 consisted of ether, which was acquired from the sale of Rabbitar tokens.
According to the annual financial report, the impairment charge on PLBY Group’s digital assets for 2022 and 2021 was $4.9 million and $1 million, respectively.
The value of the group’s digital assets at the end of 2022 was $327,000, which is significantly lower than the $7.8 million in digital assets received from the sale of NFTs in 2021.
The company accounts for its digital assets as “intangible with an indefinite life,” and such damages cannot be recovered.
The report further stated that the market price of a single ether 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.
Despite the loss, Playboy 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.
The project team is currently discussing a plan for accessing the virtual world of users who do not have NFT.