- Trump Media’s net loss widened to $54.8 million in the third quarter despite holding over 11,500 BTC.
- The company generated $15.3 million in realized income from its investments in Bitcoin options.
- Trump Media plans to leverage its digital asset strategy to purchase up to $1 billion worth of Kronos tokens.
- The company’s stock price has fallen 61% since the beginning of the year, even as assets have increased to $3.1 billion.
- CEO Devin Nunes has highlighted holdings in cryptocurrencies as a key part of Trump Media’s long-term expansion plans.
Trump Media and Technology Group, which operates the Truth Social platform, revealed that its Bitcoin holdings did little to offset rising costs as it reported steep losses in the third quarter. The company, which has ties to former President Donald Trump, disclosed a net loss of $54.8 million in the third quarter, up from a loss of $19.3 million in the same period a year earlier. Despite owning over 11,500 Bitcoins as of September 30th, these digital assets were unable to prevent financial deterioration due to increased operating costs.
The company recently reported revenue of just under $1 million, down from just over $1 million a year ago. Trump Media (DJT) stock fell slightly to close at $13.10, but rebounded slightly to $13.20 in the after-hours. Still, the company’s balance sheet appears to be under strain, and its stock price performance has been weak, with the stock down 61% since the beginning of the year.
Owning Bitcoin generates income
Despite the losses, Trump Media reported a profit of $15.3 million from investing in Bitcoin options. It also recorded unrealized gains of $33 million by holding over 746 million Kronos tokens (trading at approximately $0.18 at the end of September). The company’s Bitcoin acquisition strategy began in May, following a $1.5 billion equity sale and $1 billion convertible debt financing, with plans to further expand its crypto portfolio.
The lines between American politics and corporate leadership continue to blur, as Trump Media CEO Devin Nunes has said that the company’s crypto assets are central to its expansion and financial stability plans. Nunes stressed that the company has secured its future through a large Bitcoin vault and is looking to acquire more digital assets, including tokens like Kronos.
Plans to acquire Cronos for up to $1 billion
In August, Trump Media established a strategic partnership with cryptocurrency exchange Crypto.com and Yorkville Acquisition Corp to develop Trump Media Group CRO Strategy, a dedicated digital asset treasury focused on acquiring the Kronos token. The expected purchase volume of up to $1 billion equates to over 6.3 trillion tokens, demonstrating the company’s proactive approach to integrating blockchain assets into its financial framework.
Regarding future plans, Nunes added, “With these financial assets currently producing earnings and having achieved two consecutive quarters of positive operating cash flow, we are well positioned to pursue mergers and acquisitions that will create significant long-term value for our shareholders.”
Struggles in stock price performance
Although the company’s assets have increased significantly from $274 million in March 2024 to $3.1 billion at the end of September, the stock price remains under pressure. The stock price continues to trend lower, reflecting widespread investor concerns about the company’s financial health and the volatile crypto market due to regulatory and macroeconomic factors.
As the cryptocurrency and blockchain sector continues to evolve under increased regulation, companies like Trump Media demonstrate the continued integration of digital assets into corporate portfolios, highlighting both the opportunities and risks within the cryptocurrency market. The company’s strategy of leveraging its crypto holdings as a pillar of financial expansion continues to garner attention from investors and industry experts.