Another Company Puts Bitcoin On Balance Sheet

Zinger Key Points
  • Townsquare Media says it put $5 million in Bitcoin on its balance sheet in quarter ended March 31
  • Radio station operator says it recorded an impairment loss of $400,000 on digital assets held by the company
Another Company Puts Bitcoin On Balance Sheet

New York-based digital marketing and radio network firm Townsquare Media TSQ said in a filing with the U.S. Securities and Exchange Commission that it had added $5 million in Bitcoin BTC/USD to its balance sheet. 

What Happened: The company said in the filing it invested $5 million in Bitcoin last quarter.

“We have ownership of and control over our digital assets and we use third-party custodial services to secure it,” said Townsquare Media.

The Company believes in the long-term potential of digital assets as an investment aid said it may increase or decrease its holdings of digital assets at any time based on market conditions.

See Also: How To Get Free NFTs

Why It Matters: The purchase price of Bitcoin was not revealed in the Townsquare Media filing, but the company said it recorded an impairment loss of $400,000 citing “losses resulting from changes in the fair value” of the digital assets held by it.

On March 31, 2022, the carrying value of the company’s digital assets was reported to be $4.6 million. 

The company "views its investment in Bitcoin as liquid due to the ability to readily convert the investment to cash through sale on an active exchange.”

On Tuesday, Townsquare Media reported first-quarter earnings per share of $0.19 missing a Street estimate of $0.23.

Data from Bitcoin Treasuries, a tracker of BTC held by companies, shows MicroStrategy Incorporated MSTR and Tesla Inc TSLA are the two largest holders of Bitcoin holding 129,218 ad 43,200 BTC respectively — valued at $4.05 billion and $1.35 billion at press time.

Price Action: On Tuesday, Townsquare Media shares closed 5.1% lower at $9.71 in the regular session. At press time, over 24 hours,  Bitcoin traded 0.9% lower at $30,760.05, according to Benzinga Pro data.

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