Fenix International, the UK-based parent company of the renowned content subscription platform OnlyFans, has disclosed that it diverted a portion of its working capital to investments in Ethereum (ETH).
The company made the disclosure in its latest financial accounts, which cover the period up to November 30, 2022, recently filed with the UK corporate registry Companies House on August 24, 2023.
OnlyFans Unleash the Power of Crypto
Fenix International’s move to invest in Ethereum represents more than just a simple financial transaction, it embodies a strategic outlook that acknowledges the transformative potential of cryptocurrencies. By embracing Ethereum, the company is positioning itself at the forefront of the digital revolution, and staying attuned to the demands of modern consumers.
The decision to invest in Ethereum, as indicated in the company’s filing, is accompanied by an important revelation that there are no restrictions or limitations on the Group’s ability to sell the cryptocurrency assets. This indicates not only a level of confidence in the investment but also a commitment to maintaining flexibility in managing the company’s financial portfolio.
Fenix Navigates Impairment in a Volatile Market
Fenix International revealed intangible asset purchases of $19.89 million in its financial statements. This allocation was designated for Ether investment, representing the company’s strategic diversification into cryptocurrency.
However, the volatile nature of the crypto market reared its head, showcasing the risks associated with such investments. The company reported a substantial impairment loss of $8.46 million on its Ethereum investment.
The rationale behind this impairment was the plummeting price of Ether in recent times. According to CoinGecko data, the price of Ether nosedived by nearly 75%, dropping from $4,637 to $1,217.
Fenix Records Soaring Revenues
In addition to the investment in Ethereum, Fenix International also reported an impressive milestone in its financial performance. For the first time in its history, the company’s revenues surged past the $1 billion mark, underscoring its dominance in the content subscription industry.
This achievement further solidifies the company’s standing as a major player in the digital content space, leveraging its innovative platform, OnlyFans.
OnlyFans has been no stranger to the world of cryptocurrencies. Beyond its primary role as a content subscription platform, the company has explored the possibilities of blockchain technology and digital assets, particularly in the realm of Non-Fungible Tokens (NFTs).
OnlyFans made its first move into the crypto sector in February 2022, when it added support for verified NFT profile pictures. However, OnlyFans’ ventures into the crypto world didn’t stop at NFT profile pictures.
Former executives of the platform seized the opportunity to explore the NFT market further with the launch of Zoop, a platform for trading NFT playing cards featuring celebrities and influencers.