In a strategic move that underscores the growing integration of crypto into mainstream business operations, Fenix International Limited, the parent company of the adult content subscription platform OnlyFans, has made a significant investment in Ethereum (ETH). The company’s financial statement for 2022, recently submitted to British authorities, reveals a purchase of Ether worth $19.889 million in 2022.
The acquisition of Ether by Fenix International Limited comes at a time when the broader crypto market experienced a series of highs and lows. As of November 30, 2022, the purchased ETH had an impairment loss of $8.455 million, bringing the carrying amount to $11.434 million. This impairment reflects the volatile nature of the crypto market, with Ethereum’s price dropping from $2,797.43 to $1,298.94 during the reporting period.
OnlyFans Goes Saylor Mode With Ethereum Purchase
The investment in Ether is not OnlyFans’ first foray into the world of digital assets. In 2022, the platform announced a feature allowing creators to use verified Ethereum NFTs as their profile images. This move was seen as an attempt to empower creators and explore the potential role of NFTs on the platform. OnlyFans’ CEO, Amrapali Gan, emphasized the initiative’s aim to “empower creators to own their full potential.”
However, the crypto landscape in 2022 was not without its challenges. The year witnessed significant disruptions, including the collapse of Terra’s UST stablecoin and governance token LUNA, the bankruptcy of crypto lender Celsius, and the implosion of the cryptocurrency exchange FTX. Despite these setbacks, Ethereum remains a focal point of interest for its potential as an investment into web3 and its integration into mainstream financial systems.
OnlyFans, known for its adult content offerings, has seen substantial growth over the past year. The platform’s revenue surged to $5.6 billion in 2022, up from $4.8 billion in the previous year. The number of creators on the platform also saw a 47% increase, with a 27% rise in the total number of subscribers. Simultaneously, the platform attracted over 50 million new users, and more than 1 million new content creators joined its ranks.
The decision by Fenix International Limited to diversify its working capital into Ethereum is indicative of a broader trend. As businesses recognize the potential of blockchain technology and cryptocurrencies, investments in assets like Ethereum are becoming increasingly common. With its inherent properties as an “ultra-sound money”, Ethereum continues to attract attention from both individual investors and large corporations.
As the crypto ecosystem evolves, the integration of digital assets into traditional business models will likely become more prevalent. OnlyFans’ significant investment in Ethereum is a testament to this trend and the growing belief in the long-term potential of crypto.
As of press time, Ethereum is trading at $1,645.
Featured image from iStock, chart from TradingView.com