La Rosa Holdings put $8.14M in crypto in a restricted BitGo account. Withdrawals depend on financing compliance. The company flagged going concern doubts.
Alpha Score of 49 reflects weak overall profile with strong momentum, poor value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
La Rosa Holdings put $8.14 million of digital assets on its March 31 balance sheet. The real estate services company filed its delayed first-quarter report late last week. Most of the crypto sits in a restricted BitGo custodial account. Withdrawals, transfers, and other uses depend on compliance with the company’s financing agreements, the filing said.
The balance sheet shows $1.74 million in cash, $28.34 million in total liabilities, and a stockholders’ deficit of $7.5 million. The digital-asset holdings are mostly USDC and Frax USD. La Rosa records them at historical cost less impairment and recognizes gains above carrying value only when it sells or disposes of them.
A senior secured convertible note sets one layer of control. The note carries $11 million in principal, issued Jan. 8 for a $9.9 million purchase price. 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 in 24 months.
The investor also holds a separate token right. If exercised, it entitles the investor to 50% of tokens bought with note-closing net proceeds and 56.25% bought with certain other financing proceeds, with no further payment due from the investor. La Rosa carried a $5.35 million current liability for that agreement, measured at fair value. The restricted assets appear on a separate balance-sheet line.
Missing from the filing are token quantities, the funding-source split, exercise status, delivery history, collateral releases, and a freely withdrawable balance. The liens and token rights can reach the same assets, so a simple subtraction risks mixing unlike measures or double-counting claims.
Liquidity is tight. La Rosa reported $12.06 million of current liabilities, a $13.47 million quarterly net loss, and $1.76 million of cash used in operations. The loss included $10.50 million tied to issuing the secured note. Management warned that working capital, cash, and operating cash flow would fall short of projected operating expenses for at least 12 months from the issuance date. It flagged substantial doubt about the company’s ability to continue as a going concern.
La Rosa has used two figures for the restriction. A March 31 company release described about $3.9 million of an approximately $8.1 million reserve as restricted under the token right. The later 10-Q put the full $8.14 million balance in the restricted category as the broader financing controls applied.
Digital-asset holdings reached $10.3 million by May 31, primarily FRXUSD and USDC, after La Rosa deployed $6.7 million of initial-closing proceeds and $3.6 million from its equity line. The update left withdrawals unquantified.
After quarter-end, two Series D closings provided $500,000, followed by $250,000 of Series E gross proceeds. La Rosa also submitted a Nasdaq compliance plan tied to a deficiency based on negative $1.85 million stockholders’ equity at Dec. 31.
The 10-Q retroactively adjusted share and per-share figures for an April 1-for-10 reverse split, following earlier splits in July 2025 and January 2026. The next filing has a clear job. It needs to show token quantities, funding sources, exercises, deliveries, and collateral releases.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.