Playboy, a well-known adult publication, suffered an Ethereum impairment loss of $4.9 million due to the last year’s market-wide downturn.
In an annual filing, PLBY Group [PLBY], the parent firm of Hugh Hefner’s Playboy stated that it began accepting ETH for its NFT initiative called “Rabbitars” launched in 2021. As of last year, the value of the digital assets sits at $327,000.
The 70-year-old magazine company stated in the filing that it treats its digital assets as “indefinite-lived intangible assets,” which are liable to impairment losses if the fair value of the assets falls below their carrying value at any time.
The impairment losses on the digital assets cannot be recovered even if the fair value of the assets increases. The firm also reflected on the impact of Ethereum’s price volatility on its earnings.
The market price of one Ethereum in our principal market ranged from $964 – $3,813 during the year ended December 31, 2022, but the carrying value of each ETH we held at the end of the reporting period reflects the lowest price of one Ethereum quoted on the active exchange at any time since its receipt.
“Therefore, negative swings in the market price of Ethereum could have a material impact on the company’s earnings and carrying value, while the only time a rise in prices will impact the company’s earnings positively, is when the Eth held in the balance sheet, are sold at a gain,” the filing added.
In October 2021, at the height of the cryptocurrency market, the company announced the launch of its “Rabbitar” NFT project.
Ethereum Developers Released A Target Date For Shanghai Upgrade
Since October 2021, the value of Ether, the native token of Ethereum, has decreased by nearly 60%, per TradingView statistics.
Meanwhile, the much-anticipated Ethereum’s Shanghai hard fork now has a target date of April 12, as per an announcement made by its core developers in a meeting call.
The deadline- 10:27:35 UTC on April 12, epoch 620,9536 will be confirmed by developers on GitHub.
The Shanghai upgrade will facilitate validators to withdraw their staked ether as well as any incentives received from adding or approving blocks to the blockchain, transforming Ethereum’s entire shift to a proof-of-stake [PoS] network.