OnlyFans’ parent company, Fenix International, recently filed an accounting statement for 2022, which reveals that the company invested some of its working capital in ETH. While the company did not disclose 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 a 21% rise in earnings despite ETH losses.
Fenix International owns 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 company reported that during the year, the Group diversified part of its working capital into cryptocurrencies (‘Ethereum’ or ‘ETH’). There are no limitations or restrictions on the Group’s ability to sell cryptocurrency assets.
The statement does not provide details of Fenix’s holdings or disclose the exact value of its investment in cryptocurrencies. However, it does state that the asset has been impaired to fair value at year-end.
This suggests that OnlyFans ETH was worth less at the end of November than when it was purchased. However, this is not surprising. In the 365-day period covered by the recent filing, ETH lost more than 70% of its value, falling from $4,448 to $1,217. However, for the owner of OnlyFans, losing money on Ethereum seems to have done little to dent his revenue.
Overall, sales for the year rose 17% to $1.1 billion. Meanwhile, the company posted pre-tax profits of $525 million, a 21% increase over the previous year.
Why are companies investing in cryptocurrencies?
Apart from specialized investment firms and hedge funds, many companies have incorporated cryptocurrencies into their investment portfolios.
One remarkable example is Tesla, which became one of the first reputable companies to hold Bitcoin in its corporate treasury back in 2021. Then, the automaker dumped three-quarters of its BTC in the second quarter of 2022. And given the asset’s volatile price performance in the second half of the year, it was probably a smart move.
A January filing with the Securities and Exchange Commission (SEC) reveals that Tesla posted a $204 million loss on its Bitcoin holdings in 2022. But CEO Elon Musk has made no secret of his faith in cryptocurrencies.
Other companies that have made high-profile crypto investments include U.S. software firm MicroStrategy and Chinese digital technology giant Meitu.
MicroStrategy began investing in cryptocurrencies for the first time in 2020
MicroStrategy first began investing in cryptocurrencies in 2020, when it bought Bitcoin for $250 million. At the time, CEO Michael J. Saylor explained the reason for the company’s decision by indicating that their investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders.
Since then, the company has become one of the major corporate holders of Bitcoin in the world. It now owns more than 150,000 Bitcoin, worth around $3.91 billion at current prices.
As a result of a drop in the price of BTC earlier this month, MicroStrategy incurred a large $600 million loss in the value of its investments. However, the firm has not stated 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 holdings of Ether valued at $37.3 million and Bitcoin worth $15.6 million. Taking into account market gains since then, Meitu could currently hold more than $50 million in ETH alone.
By Audy Castañeda
