OnlyFans Invests $20 Million into Ethereum Ahead of Anticipated Bull Run
Fenix International, OnlyFans’ parent company, has invested nearly $20 million in Ethereum between 2021 and 2022.
Despite a decrease in crypto asset values, the adult platform’s revenue grew by 16.6% to $5.6 billion in 2022.
Fenix International, the company behind the adult content subscription platform OnlyFans, announced an investment of $19.9 million in Ethereum. Yet, by November 2022, the asset’s value had diminished by $8.5 million, resulting in a remaining carrying amount of $11.4 million.
This action mirrors the overall decline in cryptocurrency markets during the preceding year.
OnlyFans states that this investment corresponds with their comprehensive strategy of portfolio diversification and embracing blockchain technology.
The company is also expanding its platform — allowing users to display Ethereum-based NFTs as profile pictures and launching Zoop, a celebrity trading card platform on Ethereum’s scaling solution, Polygon.
Adult content subscription service Onlyfans’ financial report shows that it invested part of its working capital into Ethereum.— Wu Blockchain (@WuBlockchain) August 27, 2023
Onlyfans purchased $19.889 million worth of ETH. The purchased ETH has a Impairmnent loss of $8.455m as of November 30, 2022, with a Carrying amount… pic.twitter.com/dW1sYQfIkp
Huge financial loss or smart move?
Despite the crypto investment’s underperformance, OnlyFans reported a 16.6% increase in revenue, reaching $5.6 billion for the year ending November 2022.
The platform also saw a 47% increase in content creators and a 27% increase in total subscribers. Leonid Radvinsky, the company’s owner, amassed around $485 million in dividends as the platform’s demand soared.
OnlyFans’ crypto investment comes during a period of significant growth for the platform. Its revenue model, which retains about $1 for every $4 earned by content creators, has proven highly profitable.
The platform takes up to 25% of users’ income. However, interest in the platform has only grown in recent years.
What's interesting about @OnlyFans parent company investing in #Ethereum, not because of hype.— Ethprofit.eth 🦇🔊 (@Ethprofit) August 27, 2023
They see it is a tool for them to earn money and gain activity. $20M in $ETH is them preparing themselves to build and grow using Ethereum. pic.twitter.com/aO03F4SRV2
Fenix International’s substantial Ethereum investment might be viewed as a gamble to some, yet considering the company’s track record and expansion path, it’s more aptly termed a deliberate wager.
This action embodies both portfolio diversification and a stride toward mainstream cryptocurrency adoption. Fenix’s actions underscore the mounting attraction of major enterprises towards cryptocurrencies, particularly Ethereum.
Ultimately, the outcome of this investment maneuver remains subject to the test of time.
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