- OnlyFans’ parent company revealed its crypto holding.
- The company has invested millions of dollars in Ethereum.
- A drop in the cryptocurrency price didn’t hinder OnlyFans’ growth.
In a new development that underscores crypto convergence with mainstream businesses, OnlyFans’ parent company, Fenix International Limited, has become the latest firm to reveal a significant investment in crypto.
The Withering Market Volatility
The company took a strong strategic position in Ethereum when the crypto market was plagued with volatility and challenges, during a period that culminated with the global digital assets industry shedding 70% of its value within six months.
At the time of filing, the price of ETH had plummeted by nearly 75%, leaving the company with about $11.4 million on its Ethereum investment balance sheet. As a result, the company lost $8.5 million on the investment by the end of November 2022.
Despite the setback, OnlyFans experienced significant growth and success during the same period, reporting a 16.6% increase in revenue. In tandem, user engagement surged by 47% as the CEO and main private shareholder, Leonid Radvinsky, netted a salary of $1.3 million per day.
A Growing Interest in Crypto?
Cryptocurrency interest in the company’s strategy predates the multi-million investment in Ethereum. OnlyFans has been making forays into the crypto space for a while now. In February 2022, the platform allowed verified creators to mint their profile pictures into Ethereum-based NFTs.
The decision by Fenix to reveal its crypto portfolio is a testament that digital assets are gaining institutional attention. As mainstream businesses acknowledge blockchain technology’s and cryptocurrencies’ potential, investments in “ultrasound money” assets, such as Ethereum, will become more prevalent.
Other companies interested in crypto through infrastructure investments and asset holdings include IBM, Microsoft, Amazon, JPMorgan, and SpaceX.
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