A New York-based business, Townsquare Media, has decided to invest in bitcoin. The company has added $5 million BTC to its balance sheet.
The SEC filing revealing Townsquare’s Bitcoin purchase was first reported by Macroscope. The Twitter account, which focuses on institutional transactions, published a statement on Monday:
The company “invested $5 million in BTC” in the first quarter of 2021, the report states.
Digital assets have a long-term potential as an investment. The Company may increase or decrease its stake in digital assets at any time based on the current market conditions.
Townsquare reported that although the bitcoin price was not known at the time of purchase, it had incurred an impairment loss of $400,000 due to “changes in the real value” of its digital assets during the quarter.
In addition, Townsquare stated they lost $6.2 million on March 31, as the bitcoin price closed for around $45,500. The company also added that it considers its investment in bitcoin to be liquid because it is easy to convert to cash using a cryptocurrency exchange. This means that their loss was caused by the unusual way that companies have to report their cryptocurrency holdings.
Several major corporations hold bitcoin
Townsquare Media’s purchase is relatively small compared with MicroStrategy’s nearly $3 billion cryptocurrency wallet, but it ranks in the middle of the list of listed companies with cryptocurrency holdings.
Bitcoin Treasures, a site that measures the amount of bitcoin owned by different companies, lists Townsquare somewhere between mining companies such as Cleanspark Inc, which holds approximately $4.3 million in bitcoin, and Cathedra Bitcoin Inc, whose wallet contains just over $5 million in bitcoin.