Townsquare Media Purchased $5 Million in Bitcoin During Q1 2022
Townsquare Media (NYSE: TSQ) – a New York-based radio network and media company – revealed that it purchased $5 million in Bitcoin during Q1 2022 in a recent SEC filing. It claims to believe in the “long-term potential” of Bitcoin – despite being down on its current investment.
- The filing explains that the company had purchased $5 million in Bitcoin before March 31st of 2022. Its coins are secured through third part custodial services.
- That said, the Townsquare acknowledges an impairment loss of $0.4 million by the end of the quarter, due to Bitcoin’s declining fair value price. Similarly, MicroStrategy registered a whopping $170 million loss on its own Bitcoin holdings during the same period.
- Conversely, had the company sold its Bitcoin at the end of March, it would have realized an over 20% profit of $1.2 million.
- Townsquare isn’t regretful, however. “The Company believes in the long-term potential of digital assets as an investment,” reads its filing.
- It also claims that it will increase or decrease its digital asset position in the future, depending on its forecast of market conditions.
- At present, the Federal Reserve’s hawkish tone has stock and crypto investors feeling bearish. Following the last FOMC meeting, Chairman Jerome Powell promised more 0.5% rate hikes to come, in order to tame the United States’ record inflation numbers.
- As of now, nearly half of Bitcoin’s supply is underwater since its last trade.