OnlyFans in Discussions to Offload a 60% Stake to Architect Capital

OnlyFans, the London-based content subscription service, is reportedly in talks to sell a substantial 60% equity stake to Architect Capital, a private equity firm from California. The proposed deal allegedly values the popular platform at an estimated $3.5 billion, or $5.5 billion including debt, according to information from the Wall Street Journal. The sale negotiations come on the heels of significant forays into the cryptocurrency space by OnlyFans' parent company Fenix International, with investments totaling approximately $19.9 million in Ethereum over 2021 and 2022. Despite an $8.45 million impairment due to falling crypto prices by November 2022, the company's long-term strategy or current holdings in Ethereum have not been made public. In the midst of potential restructuring, current majority stakeholder Leo Radvinsky is considering strategic changes to improve payment systems, particularly for creators impacted by the stigmatization of adult content. Financial success is evident, however, as OnlyFans boasts nearly $1.6 billion in annual net revenue. While there is ongoing speculation about a potential public offering by 2028, the current sale discussions may signal major changes in digital content monetization strategies and the embrace of financial technologies such as cryptocurrencies within the industry.