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
La Rosa Holdings reported $8.14 million of digital assets on its March 31 balance sheet, but the filing did not say how much was actually usable. Most of the tokens were USDC and Frax USD held in a restricted BitGo custodial account, and access depends on compliance with financing agreements. The company values tokens at historical cost less impairment, recording gains only when sold or disposed. Liquidity remained weak: cash was $1.74 million, current liabilities were $12.06 million, total liabilities were $28.34 million, and stockholders’ deficit was $7.5 million. Q1 net loss was $13.47 million, including $10.50 million tied to issuing a secured note, and operating cash use was $1.76 million. Management said working capital, cash, and operating cash flow would not cover projected expenses for at least 12 months and raised substantial doubt about going concern. A senior secured convertible note and a separate token-right agreement create overlapping claims on the same assets, making any simple estimate of available tokens unreliable.
