After 3 reverse stock splits and a $13.5M loss, this real estate firm bet $8M on crypto it may not be allowed to withdraw
Real estate services company La Rosa Holdings put $8.14 million of digital assets on its March 31 balance sheet in a delayed first-quarter filing. How much could it actually use? The filing leaves that figure blank. Cash stood at $1.74 million, total liabilities at $28.34 million, and the stockholders’ deficit at $7.5 million.
Most of the balance was USDC and Frax USD in a restricted BitGo custodial account. Withdrawals, transfers, and other uses depend on compliance with La Rosa’s financing agreements. The company records the tokens at historical cost less impairment, recognizing gains above carrying value only when it sells or otherwise disposes of them.
A senior secured convertible note with $11 million in principal, issued Jan. 8 for a $9.9 million purchase price, sets one layer of control. Substantially all assets bought with initial-closing proceeds sit under a first-priority security interest. Remaining assets carry a second-priority interest behind a separate February note’s first lien. La Rosa measured the note at $14.57 million at quarter-end. It bears 10% annual interest, payable monthly, and matures 24 months after issuance.
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