La Rosa Holdings, a real estate services company, disclosed it held $8.14 million in digital assets — USDC and Frax USD — as of March 31, 2026. But the amount it can actually withdraw from its restricted BitGo custodial account is unknown. The company left that field blank in its latest 10-Q filing.
The same filing shows a $13.47 million quarterly net loss, including $10.50 million tied to issuing a secured note. Management expressed substantial doubt about the company's ability to continue as a going concern for at least 12 months.
The restricted BitGo account
The crypto sits in a BitGo custodial account with restrictions. Withdrawals depend on compliance with financing agreements, the filing says. La Rosa didn't disclose the freely withdrawable balance — or any token quantities, funding-source splits, exercise status, delivery history, or collateral releases.
As of May 31, digital-asset holdings had grown to $10.3 million. That came from deploying $6.7 million from the initial closing of a note and $3.6 million from an equity line. But the company's cash position was thin: $1.74 million in cash against $28.34 million in total liabilities and a $7.5 million stockholders' deficit.
A costly convertible note
On January 8, La Rosa issued a senior secured convertible note with $11 million principal for a $9.9 million purchase price. It bears 10% annual interest and matures in 24 months. The note creates a first-priority security interest on assets bought with initial-closing proceeds; remaining assets have a second-priority interest behind a separate February note.
The investor holds a token right: 50% of tokens bought with note-closing net proceeds and 56.25% from other financing, with no further payment due. La Rosa carried a $5.35 million current liability for the agreement at fair value. That contributed heavily to the quarter's loss.
Cash crunch and Nasdaq compliance
La Rosa had $12.06 million in current liabilities and used $1.76 million in cash from operations. After quarter-end, Series D and E closings brought in $750,000 total — $500,000 from Series D, $250,000 from Series E. That's not much against the deficit.
The company also submitted a Nasdaq compliance plan after reporting negative $1.85 million in stockholders' equity at December 31. The 10-Q retroactively adjusted for a 1-for-10 reverse split in April, following earlier splits in July 2025 and January 2026.
What's missing from the filing
The 10-Q leaves a long list of blanks: token quantities, how much came from the note versus the equity line, whether the investor has exercised the token right, what's been delivered, what collateral has been released, and — most critically — how much La Rosa can actually pull out of BitGo. The company didn't explain why the withdrawable balance is omitted.
For now, La Rosa holds millions in crypto but can't say how much it controls. The going concern warning, the negative equity, and the restricted account all point to a company running on fumes — and a digital asset position that may be more liability than lifeline.
