Townsquare Media, a New York-based digital marketing and radio station company, is the latest business backing the original cryptocurrency by adding $5 million worth of Bitcoin (BTC) to its balance sheet.
all filing As the Securities and Exchange Commission (SEC) disclosed Townsquare’s purchase of Bitcoin, Macroscope, a Twitter account focused on institutional trading, posted findings on May 10.
In today’s SEC filing, New York-based Townsquare Media (NYSE: TSQ) said:
“During Q1 2022, the company invested a total of $5 million in Bitcoin. The company believes in the long-term potential of digital assets as an investment.”
— MacroScope (@MacroScope17) May 10, 2022
According to the filing, the company had “invested a total of $5 million in Bitcoin” during the first quarter of 2021, explaining why it chose to invest in crypto.
“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 depending on market conditions.”
The price of Bitcoin at the time of purchase was not disclosed, but Townsquare said it recorded an impairment loss of $400,000 during the quarter as a result of a “fair value change” in its digital asset holdings.
The so-called losses appear to be due to the unusual way companies have to report on their holdings of cryptocurrencies. Townsquare also revealed that it was able to sell bitcoin for a total of $6.2 million on March 31. At that time, the price of Bitcoin was around $45,500. The company said it sees Bitcoin investments as liquid because they can be easily converted into cash using cryptocurrency exchanges.
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Although the purchase is small compared to MicroStrategy’s nearly $3 billion of hidden Bitcoin, Townsquare Media is in the middle of the list in terms of both cryptocurrencies held by publicly traded companies.
According to Bitcoin Treasures, Earth tha measures the amount of Bitcoin the company holds, Townsquare is Bitcoin mining company Cleanspark Inc., which has about $4.3 million, and Cathedra Bitcoin Inc., which has about $5 million worth of Bitcoin. It will sit somewhere around.
As the Bitcoin price fell this year and hit a recent 10-month low, other companies with big positions in the world’s first cryptocurrencies have reported losses by putting their assets on their balance sheets.
In early May, cryptocurrency investment manager Galaxy Digital Holdings reported a loss of $111.7 million in the first quarter of 2022 due to unrealized losses in its cryptocurrency portfolio. MicroStrategy CEO and Bitcoin advocate Michael Saylor also had to convince investors that the company could pay off its debts with a Bitcoin-backed loan it received in March.