Townsquare Media Invests In Bitcoin
Townsquare Media, radio and online marketing station firm located in New York, has become the latest corporation to embrace the pioneer cryptocurrency, BTC, by adding $5 million in Bitcoin to its investment portfolio.
A Twitter account discovered a filing with the US SEC detailing Townsquare’s crypto investment, Macroscope, specializing in corporate trading, who shared the discovery on the 10th of May.
As stated in the filing, during Q1 of 2021, the firm “placed a total of $5 million into BTC.” The corporation also explained why it added a cryptocurrency investment, stating that:
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“The Organization believes that virtual currencies have long-term value as an asset. Depending on our assessment of current market circumstances, the firm may grow or reduce its holdings in crypto assets at any moment.”
While the company did not reveal Bitcoin’s price when the investment was made, Townsquare said that it had incurred an accumulated depreciation of $400,000 due to market fluctuations during the quarter. The alleged loss seems to have been caused by the odd method in which firms are required to record their cryptocurrency holdings.
Also, Townsquare alleged that it wanted to sell its Bitcoin on the 31st of March for a total of $6.2 million when the price closed at about $45,500. The corporation indicated that it considers its BTC investment to be liquid, owing to the simplicity with which it can be converted to cash via a cryptocurrency exchange.
Although the acquisition is insignificant compared to MicroStrategy’s approximately $3 billion BTC holdings, Townsquare Media is in the middle in terms of cryptocurrency owned by publicly listed firms.
Firms With Crypto Investment Record Losses As Crypto Market Continues To Dip
As per Bitcoin Treasures, a website that evaluates the amount of BTC held by businesses, Townsquare would rank somewhere between the BTC mining company Cleanspark Inc., which has approximately $4.3 million worth of BTC, and Cathedra Inc., which has slightly more than $5 million.
Due to the decline in Bitcoin’s price this year, which has just reached 10-month, several corporations with significant stakes in the cryptocurrency have recorded losses.
The cryptocurrency investment firm Galaxy Digital Holdings recorded a loss of over $111.7 million in Q1 of 2022, mainly owing to shortfalls in its crypto portfolio, which was announced at the beginning of May.
Michael Saylor, CEO of MicroStrategy and a proponent of Bitcoin, has guaranteed investors the firm would be able to pay its obligations if requested since the company had taken out a loan of $205 million secured by BTC in March.
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