Trump Media and Technology Group’s Bitcoin holdings weren’t enough to prop up it’s balance sheet, as the company reported a $54.8 million loss in its third-quarter earnings as it was pinched with rising costs.
The Trump-tied company, which operates the Truth Social social media platform, shared on Friday that its Q3 net loss widened from the $19.3 million in losses compared to the same time last year.
The company reported revenues of $972,900, down from over $1 million a year ago. Shares in Trump Media (DJT) ended trading on Friday down 1.73% to $13.10, seeing a small bump after-hours to $13.20.
Trump Media reported that it held 11,542 Bitcoin (BTC) as of Sept. 30. It first announced it would start buying Bitcoin in late July, and flagged plans in its earnings to buy more, along with considering “the acquisition of other, similar cryptocurrencies.”
Bitcoin holdings generated income
Trump Media generated $15.3 million of realized income from its Bitcoin options investments and posted $33 million in unrealized gains from holding over 746 million Cronos, the native token of the Cronos blockchain. At the end of September, Cronos was trading hands for around $0.18.
The company said in July that it acquired Bitcoin as part of an investment strategy which it began in May, after raising $1.5 billion from stock sales and $1 billion from convertible senior secured bonds.
Devin Nunes, Trump Media’s CEO and President, said in a statement that the “third quarter was crucial to Trump Media’s expansion plans,” and the company has “secured our financial future with a massive Bitcoin treasury, and expanded our existing platforms.”
Trump media to buy up to $1 billion in Cronos
Trump Media entered into an agreement with crypto exchange Crypto.com and Yorkville Acquisition Corp in August to establish Trump Media Group CRO Strategy, a digital asset treasury company focused on acquiring Cronos.
In total, Trump Media Group CRO Strategy is expected to buy up to $1 billion in Cronos, representing over 6.3 trillion tokens, according to the Q3 results.
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“With these financial assets now earning income, alongside our second consecutive quarter of positive operating cash flow, we’re well-poised to act on our mergers and acquisitions strategy by acquiring one or more of the crown jewel assets we’re now evaluating, with an eye toward those that will bring the most long-term value for our shareholders,” Nunes said.
Stock price struggling to make gains
The company’s financial assets have also grown from $274 million in March 2024, when it went public, to $3.1 billion as of Sept. 30, Nunes added.
However, its stock has been trending downward, losing 61% year-to-date.
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