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Story: La Rosa Holdings Carries $8.14M in Crypto While Bleeding $13.5M in a Single Quarter

By Steven Anderson

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Restricted BitGo Account Locks Up the Bulk of Holdings. La Rosa's digital assets sit mostly in USDC and Frax USD, held inside a restricted BitGo custodial…

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How Much Is Actually Restricted? Depends When You Ask. La Rosa's own filings don't fully agree with each other on this point.

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Nasdaq Compliance Plan and Reverse Splits. La Rosa also submitted a Nasdaq compliance plan to deal with a deficiency tied to negative $1.

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La Rosa Holdings filed its Q1 report late. Inside: a real estate services company sitting on $8.14 million in digital assets, $28.

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The numbers are jarring. La Rosa held just $1.74 million in actual cash as of March 31, against $12.06 million in current liabilities. The stockholders' deficit came in at $7.

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The accounting method matters too. Assets are recorded at historical cost minus impairment, with gains only recognized when something is actually sold or disposed of.

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Then there's the senior secured convertible note. Issued January 8 with an $11 million principal, it was purchased for $9.9 million and carries a 10% annual interest rate.

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And it gets more complicated. An investor holds a token right — essentially the ability to claim significant portions of tokens purchased using the note's proceeds.

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La Rosa's own filings don't fully agree with each other on this point. As of March 31, the company said roughly $3.9 million of the $8.

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Related: Digital Asset Market Clarity Act Hits Senate Wall With 80% of Crypto Developers Already Offshore

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By May 31, digital-asset holdings had grown to $10.3 million, held mainly in FRXUSD and USDC. The increase came from two sources: $6.7 million from initial note proceeds and $3.

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After the quarter closed, La Rosa ran two Series D closings that raised $500,000, and pulled in $250,000 in Series E gross proceeds.

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La Rosa also submitted a Nasdaq compliance plan to deal with a deficiency tied to negative $1.85 million stockholders' equity as of December 31.

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The company has now done multiple reverse stock splits. A 1-for-10 reverse split happened in April, following earlier splits in July 2025 and January 2026.

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Related: Binance Drops $7 Billion in Stablecoins as Liquidity Fears Grip Crypto Markets

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