New York digital media company the latest to add Bitcoin to balance sheet

cointelegraph.com:

Townsquare Media, a New York based digital marketing and radio station company is the latest business to back the original cryptocurrency with its addition of $5 million worth of Bitcoin (BTC) to its balance sheet.

A filing with the Securities and Exchange Commission (SEC) disclosing Townsquare’s purchase of Bitcoin was first picked up by Macroscope, a Twitter account which focuses on institutional trading who posted the find on May 10.

In an SEC filing today, Townsquare Media (NYSE: TSQ), based in New York, stated:"During the first quarter of 2022, the Company invested an aggregate of $5.0 million in Bitcoin. The Company believes in the long-term potential of digital assets as an investment."The company...

As per the filing 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, stating:

Whilst the price of Bitcoin at the time of purchase wasn’t 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 so-called loss appears to be due to the unusual way companies need to report on crypto holdings. Townsquare also stated it could have sold its Bitcoin for $6.2 million total on March 31, the price of Bitcoin that day closed at a price of around $45,500. The company stated it views its Bitcoin investment as liquid due to the ease of converting it to cash using a crypto exchange.

Related: MicroStrategy shareholders letter: We’ll 'vigorously pursue' more BTC buys

Whilst the purchase is small in comparison to MicroStrategy’s nearly $3 billion stash worth of Bitcoin, Townsquare Media is around the middle of the list in terms