Trump Media and Technology Group's Bitcoin holdings are insufficient to support its balance sheet, as the company reported a loss of $54.8 million in its third-quarter financial report due to rising costs.
The company, associated with Trump, operates the Truth Social social media platform and shared on Friday that its net loss for the third quarter widened to $19.3 million from $19.3 million in the same period last year.
The company reported revenue of $972,900, down from over $1 million last year. Trump Media (DJT) shares closed down 1.73% at $13.10 on Friday, with a slight increase to $13.20 in after-hours trading.
Trump Media reported holding 11,542 Bitcoins (BTC) as of September 30. The company first announced plans to start purchasing Bitcoin at the end of July and stated in its financial report that it plans to buy more while considering "acquiring other similar cryptocurrencies."
Trump Media realized $15.3 million in revenue from its Bitcoin options investments and gained $33 million in unrealized gains from holding over 746 million Cronos, the native token of the Cronos blockchain. As of the end of September, Cronos was trading at approximately $0.18.
The company stated in July that it acquired Bitcoin as part of its investment strategy, which began in May, raising $1.5 billion through stock sales and $1 billion through convertible senior secured bonds.
Devin Nunes, CEO and President of Trump Media, stated in a press release, "The third quarter is crucial for Trump Media's expansion plans," adding that the company "ensured our financial future through a substantial Bitcoin reserve and expanded our existing platform."
In August, Trump Media entered into agreements with cryptocurrency exchange Crypto.com and Yorkville Acquisition Corp to establish the Trump Media Group CRO Strategy Company, a financial firm focused on acquiring Cronos digital assets.
According to the third-quarter results, the Trump Media Group CRO Strategy Company is expected to purchase up to $1 billion in Cronos, representing over 63 trillion tokens.
"As these financial assets begin to generate income, coupled with our positive operating cash flow for the second consecutive quarter, we are positioned to execute our acquisition strategy by acquiring one or more crown jewel assets we are evaluating, focusing on those that will provide the greatest long-term value for our shareholders," Nunes said.
Nunes added that the company's financial assets have grown from $274 million to $3.1 billion as of September 30 since its listing in March 2024.
However, its stock has been declining, down 61% year-to-date.
Related: Newly formed crypto organization aims to establish unified standards for blockchain transactions
Original: “Trump Media Reports $55 Million Loss in Q3, Bitcoin (BTC) Holdings Rise to $1.3 Billion”
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