Trump Media & Technology Group reported a net loss of over $238 million for the second quarter, with revenue below $2 million. A year ago, the loss for the same period was about $20 million.
The reason for the loss is not the sale of BTC, but the decline in its price on paper. More than $190 million of the losses were due to the revaluation of digital assets, pledged digital assets, and securities. The company has been holding its position all along—only the asset itself has become cheaper.
As of the end of June, Trump Media held 9,477 BTC (worth about $557 million on the balance sheet) plus 756 million Cronos tokens (CRO). Already in July, after the reporting date, the company bought more BTC by selling part of its crypto-related exchange-traded funds, increasing its position to approximately 14,139 BTC as of July 31—a value of about $890 million at the current exchange rate. In other words, the company is not reducing but increasing its BTC investments.
A portion of the coins is frozen as collateral: 4,260 BTC back the company’s convertible bonds, and another 2,077 BTC are pledged against an options strategy on BTC volatility.
Quarterly revenue of $1.7 million came mainly from advertising on Truth Social—an 89% increase year-on-year—but operating expenses rose by nearly 275% and exceeded $165 million, largely due to the volatility of crypto assets.
The company is also winding down some agreements with Crypto.com to focus on its media business and the upcoming merger with the fusion energy company TAE, which acting CEO Kevin McGurn called “the primary driver of long-term value.”
Trump Media shares fell by 8%