Townsquare Media, a New York-based digital marketing and radio station company, is the latest company to back the original cryptocurrency with the addition of $5 million worth of Bitcoin (BTC) to its balance sheet.
A filing with the U.S. Securities and Exchange Commission (SEC) disclosing Townsquare’s purchase of Bitcoin was first picked up by Macroscope, a Twitter account that focuses on institutional trading, posted the discovery on Monday. .
In an SEC filing today, New York-based Townsquare Media (NYSE:TSQ) said:
“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.”
—MacroScope (@MacroScope17) May 10, 2022
According to the filing, the company “invested a total of $5.0 million in Bitcoin” during the first quarter of 2022 and explained why it chose a crypto investment, stating:
“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.
Although Bitcoin’s price at the time of purchase was not disclosed, Townsquare said it recorded an impairment loss of $400,000, resulting from “changes in the fair value” of its digital assets during the quarter. .
The so-called loss appears to be due to the unusual way companies have to account for crypto holdings. Townsquare also said that it could have sold its Bitcoin for $6.2 million in total on March 31, as the price of Bitcoin that day closed at a price of around $45,500. The company said it considers its Bitcoin investment liquid due to the ease of converting it to cash using a crypto exchange.
Related: Letter to MicroStrategy Shareholders: We will “vigorously pursue” more BTC purchases
Although the buy is small compared to MicroStrategy’s nearly $3 billion bitcoin stash, Townsquare Media sits in the middle of the list in terms of the amount of crypto held by publicly traded companies.
According to Bitcoin Treasures, a site that measures Bitcoin held by companies, Townsquare sits somewhere around Bitcoin mining companies Cleanspark Inc which holds around $4.3 million and Cathedra Bitcoin Inc. which holds just over $5 million. of bitcoin dollars.
As the price of Bitcoin has slid this year and recently hit a 10-month low, other companies with large positions in the world’s first cryptocurrency have reported losses due to the presence of the asset. in their balance sheet.
Earlier in May, crypto investment manager Galaxy Digital Holdings announced a loss of $111.7 million in the first quarter of 2022 due to unrealized losses on its cryptocurrency portfolio. MicroStrategy CEO and bitcoin advocate Michael Saylor also had to assure investors that the company could cover its debts if asked due to a $205 million bitcoin-backed loan it took out in March. .