Trump Media posts $55M Q3 loss as Bitcoin bet reaches $1.3B

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Trump Media and Technology Group’s Bitcoin holdings weren’t capable to prop up it’s equilibrium sheet, arsenic the institution reported a $54.8 cardinal nonaccomplishment successful its third-quarter net arsenic it was pinched with rising costs.

The Trump-tied company, which operates the Truth Social societal media platform, shared connected Friday that its Q3 nett nonaccomplishment widened from the $19.3 cardinal successful losses compared to the aforesaid clip past year.

The institution reported revenues of $972,900, down from implicit $1 cardinal a twelvemonth ago. Shares successful Trump Media (DJT) ended trading connected Friday down 1.73% to $13.10, seeing a tiny bump after-hours to $13.20.

Trump Media reported that it held 11,542 Bitcoin (BTC) arsenic of Sept. 30. It archetypal announced it would commencement buying Bitcoin successful precocious July, and flagged plans successful its net to bargain more, on with considering “the acquisition of other, akin cryptocurrencies.”

Bitcoin holdings generated income

Trump Media generated $15.3 cardinal of realized income from its Bitcoin options investments and posted $33 cardinal successful unrealized gains from holding implicit 746 cardinal Cronos, the autochthonal token of the Cronos blockchain. At the extremity of September, Cronos was trading hands for around $0.18.

The institution said successful July that it acquired Bitcoin arsenic portion of an concern strategy which it began successful May, aft raising $1.5 cardinal from banal income and $1 cardinal from convertible elder secured bonds.

Devin Nunes, Trump Media’s CEO and President, said successful a connection that the “third 4th was important to Trump Media’s enlargement plans,” and the institution has “secured our fiscal aboriginal with a monolithic Bitcoin treasury, and expanded our existing platforms.”

Trump media to bargain up to $1 cardinal successful Cronos

Trump Media entered into an statement with crypto speech Crypto.com and Yorkville Acquisition Corp successful August to found Trump Media Group CRO Strategy, a integer plus treasury institution focused connected acquiring Cronos.

In total, Trump Media Group CRO Strategy is expected to bargain up to $1 cardinal successful Cronos, representing implicit 6.3 trillion tokens, according to the Q3 results.

“With these fiscal assets present earning income, alongside our 2nd consecutive 4th of affirmative operating currency flow, we’re well-poised to enactment connected our mergers and acquisitions strategy by acquiring 1 oregon much of the crown jewel assets we’re present evaluating, with an oculus toward those that volition bring the astir semipermanent worth for our shareholders,” Nunes said.

Stock terms struggling to marque gains

The company’s fiscal assets person besides grown from $274 cardinal successful March 2024, erstwhile it went public, to $3.1 cardinal arsenic of Sept. 30, Nunes added.

However, its banal has been trending downward, losing 61% year-to-date.