Fenix International, the parent company of OnlyFans, revealed its cryptocurrency holdings, which included a nearly $20 million investment in Ether (ETH) in 2022. Despite a decrease in the value of its Ether holdings due to a downturn in cryptocurrency prices, the company experienced robust growth in 2022, with a 16.6% increase in revenue, a 47% increase in the number of creators, and a 27% rise in total subscribers.
This investment in cryptocurrency was part of the company’s broader engagement with digital assets, which also included enabling creators to use Ethereum-based NFTs as profile pictures and the launch of a celebrity trading card platform called Zoop. The disclosure of the company’s ETH holdings coincided with a surge of adult content creators migrating to Friend.tech, a decentralized social media platform in the cryptocurrency space.
On the other hand, Bitcoin miners are facing challenges as revenue has fallen sharply, reaching levels seen when BTC fell to a market cycle low of around $16,500 in November 2022. The revenue per terahash per second per day is around half of what it was in early May when the Bitcoin Ordinals inscription frenzy caused heavy demand for block space.
Market analyst Dylan LeClair commented that while more efficient new rigs will continue to be produced, it is almost time for the price to outpace, meaning that prices need to adjust upwards to keep mining profitable at such high hash rates.
Reportedly, Bitcoin miners have been relying on funds from stock sales in the second quarter to stay afloat during the bear market. Bloomberg reported that 12 major publicly traded miners raised about $440 million through stock sales in Q2.
Mark Jeftovic, who runs the Bitcoin Capitalist newsletter, noted that some mining companies are diluting shareholders at an excessive rate, which is problematic if the dilution rate exceeds the rate at which Bitcoin is appreciating in value.
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