• Sat. May 21st, 2022

Townsquare Media bought $5 million worth of Bitcoin in the first quarter of 2022

ByHazel R. Lang

May 10, 2022

Townsquare Media (NYSE:TSQ) – a New York-based radio network and media company – disclosed that it purchased $5 million worth of Bitcoin during the first quarter of 2022 in a recent SEC filing. He claims to believe in the “long-term potential” of Bitcoin – despite being down on his current investment.

  • The filing explains that the company purchased $5 million worth of Bitcoin before March 31, 2022. Its coins are secured by third-party custody services.
  • That said, the Townsquare recognizes an impairment loss of $0.4 million by the end of the quarter, due to the lower fair value price of Bitcoin. Similarly, MicroStrategy posted a whopping $170 million loss on its own Bitcoin holdings over the same period.
  • Conversely, if the company had sold its Bitcoin at the end of March, it would have made a profit of more than 20% of $1.2 million.
  • Townsquare isn’t unfortunate, though. “The company believes in the long-term potential of digital assets as an investment,” reads its filing.
  • He also claims that he will increase or decrease his position in digital assets in the future, depending on his forecast of market conditions.
  • Right now, the hawkish tone of the Federal Reserve is making equity and crypto investors feel bearish. Following the last FOMC meeting, Chairman Jerome Powell promised further rate hikes of 0.5% to come, in order to tame record inflation figures in the United States.
  • Currently, nearly half of Bitcoin’s supply is underwater since its last transaction.
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