American radio network Townsquare Media reported on the purchase of BTC for $5 million

New York-based radio network and media company Townsquare Media became a long-term investor in the first cryptocurrency, buying $5 million worth of bitcoin.

According to reportingfiled by Townsquare Media with the U.S. Securities and Exchange Commission (SEC), during the first quarter of 2022, the company invested a total of $5 million in bitcoin. Townsquare Media said it believes in the long-term potential of digital assets, while it can increase or reduce their bitcoin reserves depending on market conditions.

The company considers bitcoin investments liquid and prefers to diversify its investment portfolio with their help due to the ease of converting digital assets into cash through cryptocurrency exchanges. Townsquare Media did not disclose the value of bitcoin at the time of its purchase, but recorded a loss of $400,000 due to changes in the prices of digital assets held on its balance sheet during the said quarter.

Townsquare Media explained that on March 31, it could sell its BTC for a total of $6.2 million – the price of bitcoin that day was at about $45,500. Due to the fact that the first cryptocurrency recently fell below $30,000, hitting a 10-month low , many companies with large positions in bitcoin are also reporting losses. Thus, the net loss of the Galaxy Digital investment company for the first quarter of this year amounted to $111.7 million.

There are other institutional investors who are making much larger purchases of bitcoin, such as Microstrategy. Earlier, the company’s management stated that it would continue to buy bitcoin for long-term storage, regardless of its rate. A few days ago, the Salvadoran government also took advantage of the market decline to buy 500 BTC.