New York-Based Media Firm Becomes Latest to Purchase Bitcoin
Townsquare Media Purchased Bitcoin During Q1 2022
A filing with the US Securities and Exchange Commission (SEC) has disclosed that Townsend Media bought $5 million in Bitcoin during Q1 2022. The cryptocurrencies were secured through third-party custodial services.
Whilst the price of Bitcoin at the time of purchase wasn’t disclosed, Townsquare said it recorded an impairment loss of $400,000 by the end of the quarter, due to Bitcoin’s declining fair value price.
“During the quarter ended March 31, 2022, the Company recorded a total of $0.4 million in impairment losses resulting from changes in the fair value of the Company's digital assets observed during the period,” the filing states.
Townsquare Believes in Bitcoin's Long-Term Potential
Townsquare also stated it could have sold its Bitcoin for $6.2 million total on March 31, but didn't because it believes in its long-term potential.
“The Company believes in the long-term potential of digital assets as an investment. The Company may increase or decrease its holdings of digital assets at any time based on our view of market conditions,” the company concluded.