Townsquare Media (NYSE: TSQ) – a New York-based radio network and media company – revealed that it purchased $5 million in Bitcoin during Q1 2022 in a recent SEC filing. It claims to believe in the “long-term potential” of Bitcoin – despite being down on its current investment.
The filing explains that the company had purchased $5 million in Bitcoin before March 31st of 2022. Its coins are secured through third part custodial services.
That said, the Townsquare acknowledges an impairment loss of $0.4 million by the end of the quarter, due to Bitcoin’s declining fair value price. Similarly, MicroStrategy registered a whopping $170 million loss on its own Bitcoin holdings during the same period.
Conversely, had the company sold its Bitcoin at the end of March, it would have realized an over 20% profit of $1.2 million.
Townsquare isn’t regretful, however. “The Company believes in the long-term potential of digital assets as an investment,” reads its filing.
It also claims that it will increase or decrease its digital asset position in the future, depending on its forecast of market conditions.
At present, the Federal Reserve’s hawkish tone has stock and crypto investors feeling bearish. Following the last FOMC meeting, Chairman Jerome Powell promised more 0.5% rate hikes to come, in order to tame the United States’ record inflation numbers.
As of now, nearly half of Bitcoin’s supply is underwater since its last trade.