• A New York-based digital media company is the latest to include Bitcoin on its balance sheet

  • While the acquisition has no bearing on the billions of dollars in Bitcoin owned by other companies, the corporation claims it might have profited $1.2 million if it had sold its holdings at the conclusion of the first quarter.

    Townsquare Media, a digital marketing and radio station company based in New York, is the latest company to endorse the original cryptocurrency, adding $5 million in Bitcoin (BTC) to its balance sheet.

    A filing with the US Securities and Exchange Commission (SEC) revealing Townsquare’s Bitcoin purchase was first picked up by Macroscope, a Twitter account focusing on institutional trading, who publicized the information on Monday.

    The corporation “invested an aggregate of $5 million into Bitcoin” during the first quarter of 2021, according to the filing, and provided an explanation for why it picked 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.”

    While the price of Bitcoin at the time of acquisition was not disclosed, Townsquare reported a $400,000 impairment loss due to “changes in the fair value” of its digital asset holdings over the quarter.

    The alleged loss appears to be the result of the odd manner in which firms must record their crypto holdings. Townsquare also alleged that it could have sold its Bitcoin for a total of $6.2 million on March 31, since the price of Bitcoin that day closed at roughly $45,500. The corporation indicated that it considers its Bitcoin investment to be liquid due to the simplicity with which it can be converted to cash utilizing a cryptocurrency exchange.

    While the purchase pales in contrast to MicroStrategy’s almost $3 billion Bitcoin stockpile, Townsquare Media ranks towards the middle of the list in terms of the amount of cryptocurrency held by publicly traded corporations.

    According to Bitcoin Treasures, a website that quantifies the amount of Bitcoin held by organizations, Townsquare would be halfway between the Bitcoin mining companies Cleanspark Inc, which holds roughly $4.3 million, and Cathedra Bitcoin Inc., which contains slightly more than $5 million.

    With the price of Bitcoin falling this year and recently reaching a 10-month low, several corporations with significant holdings in the world’s first cryptocurrency have recorded losses as a result of having the commodity on their balance sheet.

    Galaxy Digital Holdings announced a $111.7 million loss in the first quarter of 2022 owing to unrealized losses on its cryptocurrency holdings earlier in May. MicroStrategy CEO and Bitcoin supporter Michael Saylor also had to reassure investors that the company could fulfill its debts if necessary due to a $205 million Bitcoin-backed loan it took out in March.

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