Trump Media and Technology Group’s growing Bitcoin stash wasn’t enough to offset mounting expenses, as the company posted a $54.8 million loss for the third quarter.
The firm, which operates the Truth Social platform, said Friday that its Q3 net loss widened from $19.3 million a year earlier, driven by rising costs.
Revenue slipped to $972,900 from just over $1 million in the same period last year. Shares of Trump Media (DJT) closed Friday down 1.73% at $13.10, before inching up to $13.20 in after-hours trading.
As of September 30, the company held 11,542 Bitcoin. Trump Media began purchasing Bitcoin in late July and said in its earnings report that it plans to continue expanding its crypto holdings, potentially including other digital assets.
Bitcoin holdings boost income
Trump Media and Technology Group reported $15.3 million in realized income from its Bitcoin options investments and $33 million in unrealized gains from holding more than 746 million Cronos (CRO), the native token of the Cronos blockchain. At the end of September, CRO was trading around $0.18.
The company said it began acquiring Bitcoin in May as part of a broader investment strategy, following $1.5 billion raised from stock sales and $1 billion from convertible senior secured bonds.
CEO and president Devin Nunes described the third quarter as “crucial to Trump Media’s expansion plans,” saying the firm had “secured our financial future with a massive Bitcoin treasury and expanded our existing platforms.”
Trump Media to buy up to $1 billion in Cronos
In August, Trump Media partnered with crypto exchange Crypto.com and Yorkville Acquisition Corp to launch Trump Media Group CRO Strategy, a digital asset treasury unit focused on acquiring Cronos.
According to its Q3 report, the new venture plans to purchase up to $1 billion worth of CRO — representing more than 6.3 trillion tokens.
“With these financial assets now generating income, and following our second straight quarter of positive operating cash flow, we’re well-positioned to pursue our M&A strategy,” Nunes said. “We’re evaluating several crown jewel opportunities that we believe can deliver long-term value for our shareholders.”
Stock struggles to gain traction
Nunes noted that the company’s financial assets have grown from $274 million in March 2024, when it went public, to $3.1 billion as of September 30.
Despite the surge in asset value, Trump Media’s stock has struggled, falling 61% year-to-date.
