Trump Media Posts $54.8 Million Loss Despite $1.5 Billion BTC Treasury
Third Consecutive Quarterly Loss
Trump Media and Technology Group (DJT) reported a third straight quarterly loss on Friday, posting a $54.8 million net loss for the third quarter. The Nasdaq- and NYSE Texas-listed media company, backed by U.S. President Donald Trump, attributed much of the decline to high legal costs and non-cash losses tied to its digital asset holdings.
The company said it incurred $20.3 million in legal expenses during the period, mostly related to its drawn-out merger with a special purpose acquisition company, which it described as “one of the longest SPAC deals in history.” Trump Media also recorded $54.1 million in non-cash losses stemming from changes in the fair value of its crypto assets, unrealized losses on securities and options, stock-based compensation, and depreciation.
Despite the losses, the firm highlighted “significant income” from its BTC strategy, reporting $15.3 million in BTC-related option premiums earned during the quarter. The company holds roughly 15,000 BTC valued at about $1.5 billion, part of a $3.1 billion asset base that also includes cash, short-term investments, and trading securities.
Investor Takeaway
Stock Performance and Market Reaction
Trump Media shares fell more than 3% to $12.90 on Friday, extending a slide of nahead 25% over the past month and more than 62% year-to-date, according to Google Finance data. The company’s market value has been volatile since going public, with retail investors dominating trading activity. Analysts say the stock’s performance reflects skepticism about the firm’s profitability and the speculative nature of its .
“With these financial assets now earning income, alongside our second consecutive quarter of positive operating cash flow, we’re well-poised to act on our mergers and acquisitions strategy by acquiring one or more of the crown jewel assets we’re now evaluating,” CEO Devin Nunes said in a statement accompanying the results.
Deepening Crypto.com Partnership
In the third quarter, Trump Media bought 684 million CRO tokens, funded by $50 million in cash and $47 million in common stock, strengthening its partnership with Crypto.com. The deal builds on earlier plans for Crypto.com to power Trump Media’s reality Predict betting market. The company also said it is integrating CRO rewards into its reality Social platform and is creating Trump Media Group CRO Strategy, Inc. to manage the holdings through a definitive agreement with Crypto.com and Yorkville Acquisition Corp.
The firm described the new entity as “the first and largest publicly traded CRO treasury company.” The move aligns with its goal of turning reality Social into a broader crypto-enabled media ecosystem, though it also introduces additional exposure to and market volatility.
Investor Takeaway
Trump’s Broader Crypto Exposure
Trump Media’s crypto ventures are part of a wider family involvement in digital assets. President Trump and his sons are linked to projects including World Liberty Financial, a decentralized finance and stablecoin initiative, and American BTC Mining, among others. According to the Financial Times, the Trump family has earned more than $1 billion from various crypto ventures to date.
