United Kingdom-based subscription platform for adult content, OnlyFans, has entered into the cryptocurrency space coinciding with a period in which the company has registered significant growth.
According to the company’s financial filing, OnlyFans had purchased $19.889 million worth of Ethereum (ETH). However, the value of the purchased Ethereum has decreased, leading to an impairment loss of $8.455 million by November 30, 2022.
As a result, the remaining value of Ethereum, known as the carrying amount, stands at $11.434 million. This impairment loss indicates that the initial investment in Ethereum has declined in value, aligning with the recent price movements in the general cryptocurrency market.
According to the filings, investing in cryptocurrency is part of putting money into intangible assets with an ‘indefinite useful life. OnlyFans’ venture into cryptocurrencies could have several implications, pointing towards a deliberate move towards diversification and embracing blockchain technology.
This move coincides with Ethereum being increasingly considered an attractive asset for its potential as a viable store of value. Its growing integration into mainstream financial establishments further enhances the asset’s allure as a sustainable investment option.
Additionally, the investment might be linked to Ethereum’s capability to serve as an inflation-resistant asset, potentially allowing it to remain less affected by the fluctuations of conventional financial markets.
Apart from its cryptocurrency investments, OnlyFans has previously expanded its financial portfolio through ventures in non-fungible tokens (NFT). In February 2022, OnlyFans introduced a feature enabling users to showcase verified NFTs as profile images. The adult platform only allowed NFTs minted on the Ethereum blockchain.
OnlyFans strong financial postings
For the 12 months ending on November 30, 2022, the company posted strong financial results, reaching a revenue milestone of over $1 billion. Simultaneously, the platform attracted over 50 million new users, and more than 1 million new content creators joined its ranks. Collectively, users spent a substantial $5.5 billion on the site.
The filings indicated that Leonid Radvinsky, a Ukrainian based in the US who acquired the company in 2018, accumulated approximately $485 million in dividends since the beginning of the previous year as demands for OnlyFans grew.
It is worth noting that OnlyFans’ revenue model involves the company keeping around £1 out of every £4 earned by its content creators. This approach has been highly profitable for numerous adult content creators, leading to significant earnings for some individuals on the platform.