Townsquare Media (NYSE: TSQ) — a New York-based radio network and media company — announced in a recent filing with the SEC that in the first quarter of 2022 Bitcoin bought for $5 million. It claims to believe in bitcoin’s “long-term potential” — despite being behind on its current investment.
- The filing explains that prior to March 31, 2022, the company had purchased $5 million worth of Bitcoin. Its coins are secured by third party custody services.
- However, Townsquare recognizes an impairment loss of $0.4 million through the end of the quarter due to Bitcoin’s declining fair value price. Similarly, MicroStrategy recorded a whopping $170 million loss in its own bitcoin holdings over the same period.
- On the other hand, if the company had sold its bitcoins in late March, it would have made a profit of over 20% of $1.2 million.
- However, Townsquare has no regrets. “The company believes in the long-term potential of digital assets as an investment,” the filing reads.
- It also claims that it will increase or decrease its digital asset position in the future depending on its forecast of market conditions.
- Currently, the Federal Reserve’s hawkish tone is making stock and crypto investors feel bearish. After the last FOMC meeting, Chairman Jerome Powell promised further rate hikes of 0.5% to tame record US inflation numbers.
- As of now, almost half of Bitcoin’s supply is underwater since the last trade.
Source: Crypto News Deutsch