New York digital media company is the latest to include Bitcoin on its balance sheet
While the acquisition had 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 firm located in New York, is the latest corporation 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 “placed an aggregate of $5 million into Bitcoin” during the first quarter of 2021, according to the report, and offered an explanation for why it picked a crypto investment. 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 throughout 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 ended at roughly $45,500. According to the corporation, its Bitcoin investment is liquid. While the purchase pales in comparison to MicroStrategy’s almost $ 3 billion Bitcoin stockpile, Townsquare Media ranks toward the center of the listing in phrases of the quantity of cryptocurrency held through publicly indexed organizations in New York with the charge of Bitcoin falling this 12 months and currently attaining a 10-month low, numerous organizations with giant holdings withinside the world’s first cryptocurrency have recorded losses because of having the commodity on their stability sheet.