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.”
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.