Trump Media & Technology Group (DJT) reported a first-quarter net loss of $405.9 million on $871,200 in revenue, up from $31.7 million a year earlier, as unrealized losses on its cryptocurrency holdings hit results.
Truth Social’s parent company recorded $244 million in unrealized losses on its cryptocurrency holdings. It also recorded an investment loss of $108.2 million tied primarily to equities.
Trump Media had 9,542.16 bitcoins at the end of March, with a cost base of $1.13 billion and a fair value of $647.1 million, the company wrote in an SEC filing. That position is now worth about $770 million.
The company also owned 756.1 million with a cost basis of $113.9 million and a fair value of $53 million. Trump Media closed the purchase of $105 million in CRO last year as part of a Crypto.com deal that tied the token to Truth Social and Truth+ rewards.
Trump Media reported $17.9 million in operating cash flow for the quarter, helped by the sale of previously purchased put options on pledged bitcoin and bitcoin-related securities.
A portion of the company’s bitcoins are blocked. Trump Media said that 4,260.73 BTC, worth $289 million at the end of the quarter, served as collateral for the convertible notes.
DJT also had covered call options on 4,000 BTC with a counterparty to hedge its exposure to the cryptocurrency’s volatility. Those options require 2000 BTC to be held as collateral with the counterparty.
The company raised $2.5 billion for a bitcoin treasury strategy last year, and then unveiled a $2 billion bitcoin stack in July.
Revenue rose 6% from $821,200 a year earlier. Media revenue was $810,100, while Truth.Fi generated $61,100 in management fees tied to ETF offerings.
