A New York-based radio station and digital marketing firm, Townsquare Media, is another business to support the original crypto with the incorporation of up to $5M worth of BTC (Bitcoin) to the balance sheet thereof. A filing submitted under the SEC (Securities and Exchange Commission) of the United States revealing the purchase of BTC by Townsquare was initially shared on Monday by a Twitter account Macroscope that is centered around the trading by the organizations.
As per the filing, an average amount of up to $5M was invested by the firm into BTC in the initial quarter of the previous year and it gave an elaboration for why crypto was chosen by it as the method of investment. The firm is of the view that digital assets have the potential of being used as investment means for the long term. The venue can enhance or lessen its digital asset holdings at any time when it considers that to be necessary for it under the conditions of the market.
Though the value of BTC was not revealed at the time when it was bought, Townsquare mentioned that impairment damage of nearly $400,000 was recorded by it, caused by the reasonable value of its holdings in digital assets during the previous quarter. The very loss seems to have occurred because of some unconventional method by which the firms are required to report regarding their crypto holdings. Apart from this, Townsquare indicated that it could have traded its BTC in return for a sum of almost $6.2M on 31st March, as Bitcoin’s price closed nearly at $45,500.
The firm asserted that it perceives BTC investment to be liquid because of the convenience of transferring it into cash with assistance from a crypto exchange. While the respective purchase seems to be small when compared with up to a $3B stash worth of BTC purchased by MicroStrategy, the position of Townsquare Media is in the middle of the series concerning the crypto amount held by openly traded firms.
According to a site specified for the measurement of BTC held on the behalf of the firms, Bitcoin Treasuries, the place of Townsquare is close to the BTC mining firms Cathedra Bitcoin Inc. (holding up to $5M in BTC) and Cleanspark Inc. (holding approximately $4.3M in BTC).
James Thompson