Trump Media reports $405.9M Q1 loss on crypto holdings
Trump Media & Technology Group (DJT) reported a $405.9 million net loss for the first quarter of 2026, driven largely by $244 million in unrealized losses on cryptocurrency holdings and a $108.2 million investment loss on equity securities. The parent company of Truth Social had $871,200 in revenue, up 6% from a year earlier. The company's bitcoin holdings stood at 9,542.16 BTC with a cost basis of $1.13 billion and a fair value of $647.1 million at quarter-end, later increasing to around $770 million. It also held 756.1 million CRO tokens valued at $53 million, part of a $105 million purchase tied to a Crypto.com partnership. Trump Media adopted a bitcoin treasury strategy last year, raising $2.5 billion and disclosing a $2 billion bitcoin stack in July. A portion of its bitcoin is locked: 4,260.73 BTC serves as collateral for convertible notes, and 2,000 BTC is held as collateral for covered call options hedging volatility. Despite the losses, the company reported $17.9 million in operating cash flow from selling put options on pledged bitcoin and related securities. Revenue included $810,100 from media and $61,100 in Truth.Fi ETF management fees. For wallet and key holders, this report underscores the volatility risks of holding large crypto treasuries, especially when leveraged as collateral. Unrealized losses can significantly impact financial statements and raise concerns about counterparty risk if collateral positions face margin calls. Investors should monitor such disclosures to gauge market stability and the potential for forced liquidations affecting crypto prices.
Key facts
- Trump Media reported $405.9M Q1 net loss, mainly from $244M unrealized crypto losses.
- Held 9,542 BTC (cost $1.13B, fair value $647.1M) and 756.1M CRO (cost $113.9M).
- 4,260 BTC used as collateral for convertible notes; 2,000 BTC for covered call options.
- Company raised $2.5B for bitcoin treasury strategy; disclosed $2B BTC stack in July.
- Operating cash flow of $17.9M from selling put options on pledged bitcoin and securities.