A New York-based digital marketing and radio station firm, Townsquare Media submitted its filing with the Securities and Exchange Commission (SEC) to inform its $5 million investment in Bitcoin.
The filing for Townsquare’s purchase of Bitcoin was revealed by Macroscope, a Twitter account that follows institutional trading.
As per the filing, the company invested an “aggregate of $5 million into Bitcoin” after observing possible growth in the digital assets space.
The filing stated, “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.”
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However, the price of Bitcoins at the time of purchasing was not disclosed in the filing. Townsquare also disclosed an impairment loss of $400,000 owing to “changes to the fair value” of its digital asset holdings over the quarter.
Townsquare got a chance to lock profits on March 31 by selling its Bitcoins holding for $6.5 million. At that time, the market price of Bitcoin was around $45,000. The company considers its bitcoin investment as a liquid it’s too easy to cash out it through crypto exchanges.
