May 11, 2022
By Anjali Kochhar
Townsquare Media, a New York-based digital marketing and radio station company has become the latest in business to back the world’s most popular cryptocurrency by addition of $5 million worth of Bitcoin (BTC) to its balance sheet.
A Securities and Exchange Commission (SEC) filing said that the company “invested an aggregate of $5 million into Bitcoin” during the first quarter of 2021 and provided an explanation for why it chose a crypto investment.
“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 filing read.
Whilst 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 to the fair value” of its digital asset holdings over the quarter.
The company also stated it views its Bitcoin investment as liquid due to the ease of converting it to cash using a crypto exchange.
Earlier this month, crypto investment manager Galaxy Digital Holdings reported a $111.7 million loss 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 Bitcoin-backed $205 million loan it took out in March.
Image credit: Wikimedia commons
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
