Trump Media & Technology Group Corp. (you might know them as DJT on the Nasdaq) just posted a $238.1 million net loss for Q2. A huge chunk of that (about $190.4 million) came from their crypto and equity investments taking a major hit.
The company holds approximately 14,139 Bitcoin (including staked positions) valued at $890.5 million as of July 31. Revenue rose 89 percent year-over-year (YoY) to $1.7 million, driven by Truth+ streaming and Truth Application Programming Interface (API) data-licensing products. DJT stock slipped around 5 percent in 24 hours.
The Bitcoin balance sheet: A double-edged sword
Trump Media’s crypto holdings are both its biggest asset and its biggest liability. As of June 30, the company held 9,477.16 Bitcoin, with an additional 2,077.34 Bitcoin pledged as collateral for options strategies.
In July, the company sold $159.6 million worth of Bitcoin-related securities and acquired additional Bitcoin, bringing its holdings to approximately 14,139 Bitcoin as of July 31, valued at $890.5 million.
The $190.4 million unrealized loss reflects Bitcoin’s price decline during the quarter, from roughly $80,000 in late March to around $63,000 by June 30.
The company warned that lending and allocation arrangements carry counterparty credit risk and the risk of asset recovery failure.
Revenue growth and strategic pivot
Despite the headline loss, Trump Media’s underlying business showed signs of growth. Revenue jumped 89 percent year-over-year to $1.7 million, thanks to the launch of its Truth+ streaming and the new Truth API, which gives institutional clients quick access to posts from prominent Truth Social accounts. Over ten commercial customer agreements have already been executed for the data feed.
The company also announced it will adjust its digital asset treasury strategy, maintaining long-term exposure while managing volatility and reallocating more resources toward Truth Social and other media businesses.
Interim CEO Kevin McGurn highlighted progress toward a proposed fourth-quarter merger with TAE Technologies, a private fusion power developer.
The crypto treasury strategy: A $1.37 billion bet gone sour
Trump Media originally purchased 11,542 BTC for about $1.37 billion, averaging $118,522 per coin. The exits have averaged $74,855, far below cost, with the combined realized and paper shortfall estimated at roughly $555 million. The company has since sold $159.6 million of Bitcoin-related securities and used the proceeds to buy spot Bitcoin.
As said, the company now holds approximately 14,139 BTC valued at $890.5 million, but much of it is restricted: 4,260.73 BTC are pledged against convertible notes, and 2,077.34 BTC support the company’s options strategy.
Management has also placed some Bitcoin with third parties through lending and yield arrangements, warning of counterparty credit risk and rehypothecation.
The company now plans a “more disciplined digital asset treasury management framework” to retain long-term crypto exposure while reducing volatility. Whether that comes too late for a $1.37 billion bet that went bad, of course, remains to be seen.
