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

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.

Read Next: Long-Time Bitcoin Bear Offers $1,000 To Every Retweeter If His Prediction Of BTC Hitting $10K In 2022 Goes Wrong

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CryptocurrencyEarningsNewsMarketsBitcoin
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!