Trump Media’s Q1 loss widens to $406 million on bitcoin, CRO markdowns

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Trump Media’s Q1 loss widens to $406 million on bitcoin, CRO markdowns

Trump Media & Technology Group (DJT) reported a $405.9 million first-quarter net loss on $871,200 in revenue, widening from $31.7 million a year earlier as unrealized losses on its crypto holdings weighed on results.

The parent company of Truth Social booked $244 million in unrealized losses on its cryptocurrency holdings. It also recorded a $108.2 million investment loss tied mostly to equity securities.

Trump Media held 9,542.16 bitcoin at the end of March, with a cost basis of $1.13 billion and a fair value of $647.1 million, the firm wrote in a filing with the SEC. That position is now worth around $770 million.

The company also held 756.1 million with a cost basis of $113.9 million and a fair value of $53 million. Trump Media closed the purchase of $105 million in CRO last year as part of a Crypto.com deal that tied the token to Truth Social and Truth+ rewards.

Trump Media reported $17.9 million in operating cash flow for the quarter, helped by the sale of previously purchased put options on pledged bitcoin and bitcoin-related securities.

A portion of the firm’s bitcoin is locked up. Trump Media said 4,260.73 BTC, worth $289 million at quarter-end, served as collateral for convertible notes.

DJT also held covered call options on 4,000 BTC with a counterparty to hedge its exposure to the cryptocurrency’s volatility. Those options require 2,000 BTC to be held as collateral with the counterparty.

The company raised $2.5 billion for a bitcoin treasury strategy last year, then disclosed a $2 billion bitcoin stack in July.

Revenue rose 6% from $821,200 a year earlier. Media revenue was $810,100, while Truth.Fi generated $61,100 in management fees tied to ETF offerings.



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