Townsquare Media, a New York-based radio and digital marketing company, is the latest company to bet on the original cryptocurrency with the addition of $5 million worth of bitcoin (BTC) to its balance sheet.
A filing with the United States Securities and Exchange Commission (SEC) revealing Townsquare’s purchase of bitcoin was first announced by Macroscope.a Twitter account that focuses on institutional trading, which posted the finding on Monday.
In an SEC filing today, Townsquare Media (NYSE: TSQ), based in New York, stated:
“During the first quarter of 2022, the Company invested an aggregate of $5.0 million in Bitcoin. The Company believes in the long-term potential of digital assets as an investment.”
— MacroScope (@MacroScope17) May 10, 2022
In an SEC filing today, New York-based Townsquare Media (NYSE: TSQ) stated:
“During the first quarter of 2022, the Company invested a total of $5.0 million in bitcoin. The Company believes in the long-term potential of digital assets as an investment.”
According to the presentation, the company “invested a total of $5 million in bitcoin” during the first quarter of 2021 and provided an explanation as to why it chose a cryptocurrency investmentstating:
“The Company believes in the long-term potential of digital assets as an investment. The Company may increase or decrease its holdings of digital assets at any time based on our view of market conditions.”
The Company believes in the long-term potential of digital assets as an investment. The Company may increase or decrease its digital asset holdings at any time based on our view of market conditions.
Although the price of bitcoin at the time of purchase was not disclosed, Townsquare said it recorded an impairment loss of $400,000.resulting from “changes in fair value” of its digital asset holdings during the quarter.
The alleged loss appears to be due to the unusual way companies have to report on cryptocurrency holdings. Townsquare also stated that it may have sold its bitcoins for a total of $6.2 million on March 31, as bitcoin closed at around $45,500 that day.. The company stated that it considers its investment in bitcoin to be liquid due to the ease of converting it into cash using a cryptocurrency exchange.
Although the purchase is small compared to the nearly $3 billion MicroStrategy holds in bitcoin, Townsquare Media is in the middle of the pack for the amount of cryptocurrency owned by publicly traded companies..
According to Bitcoin Treasures, a site that measures the amount of bitcoin held by businesses, Townsquare would sit somewhere around Bitcoin mining companies Cleanspark Inc, which has around $4.3 million, and Cathedra Bitcoin Inc, which has just over $5 million worth of bitcoin..
Since the price of bitcoin is falling this year and recently hit 10-month lows, other companies with large holdings of the world’s leading cryptocurrency have reported losses for having the asset on their balance sheet.
In early May, the cryptocurrency investment manager Galaxy Digital Holdings reported a loss of $111.7 million in the first quarter of 2022 due to unrealized losses on its cryptocurrency wallet. MicroStrategy CEO and bitcoin advocate Michael Saylor also had to assure investors that the company could cover their debts, if asked.due to a $205 million bitcoin-backed loan he took out in March.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.