Fenix International, the parent company of popular subscription platform OnlyFans filing reveals that the company had invested nearly $20 million in Ethereum ETH/USD between 2021 and 2022.
What Happened: According to the filing submitted to the United Kingdom’s corporate registry on August 24, Fenix International initially purchased $19.9 million worth of ETH. However, due to the decline in overall cryptocurrency prices during 2022, the total value of its Ether holdings decreased by $8.5 million by the end of November 2022.
By November 30, when the price of Ether stood at $1,295, Fenix International’s carrying amount for its ETH holdings was recorded at $11.4 million.
Fenix International acknowledged the move to diversify its working capital by investing in cryptocurrencies, specifically Ethereum. "During this year, the group diversified part of its working capital into a cryptocurrency asset—ETH or Ethereum," the company said in a statement.
The company said in the filing that there are no restrictions on its ability to sell cryptocurrency assets.
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Why It Matters: Last year, OnlyFans made headlines in the crypto space by announcing that creators on its platform could use verified Ethereum non-fungible tokens (NFTs) as their profile images, showcasing their ownership of the digital asset.
The subscription-based platform also donated $1.3 million in Ethereum to UkraineDAO in 2022 — a decentralized autonomous organization engaged in helping Ukraine’s efforts against fending off Russia.
While the cryptocurrency market faced numerous challenges in 2022, including failures of projects such as UST stablecoin and governance token LUNA, as well as the bankruptcy of Celsius, OnlyFans experienced a successful year.
Aside from its Ether investment setbacks, the platform’s revenue skyrocketed to $5.6 billion, surpassing the $4.8 billion it generated in 2021. Furthermore, the number of creators grew by 47% and the total number of subscribers increased by 27%.
Price Action: At the time of writing, ETH was trading at $1,650, up 0.17% in the last 24 hours, according to Benzinga Pro.
Photo Courtesy: Charnsitr On Shutterstock.com
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