Trump Media and Technology Group, a media conglomerate listed on the Nasdaq and NYSE Texas under the ticker DJT, has announced a net loss of $54.8 million for the third quarter of this fiscal year. This marks the third consecutive quarter of losses for the company, with its shares declining over 3% to settle at $12.90. In the past month, the stock has faced a significant downturn of nearly 25%, and it has plummeted over 62% year-to-date, according to data from Google Finance.
The financial setbacks are attributed mainly to legal expenses totaling $20.3 million, predominantly linked to the ongoing merger with a special purpose acquisition company (SPAC). This process is noted by the company as “one of the longest SPAC deals in history,” resulting in substantial legal costs. Furthermore, Trump Media reported $54.1 million in non-cash losses, influenced by fluctuations in the fair value of its digital asset holdings, non-cash interest expenses, stock-based compensation, unrealized losses in trading securities, and depreciation and amortization.
Despite these losses, the company highlighted a positive development: its innovative bitcoin strategy has yielded $15.3 million in income from bitcoin-related option premiums during the quarter. Trump Media holds $3.1 billion in assets, consistent with the previous quarter, which includes cash, short-term investments, securities, and 15,000 BTC (approximately valued at $1.5 billion) acquired since May. CEO and President Devin Nunes expressed optimism, noting that the firm’s financial assets are now generating income alongside a second consecutive quarter of positive operating cash flow. This positions the company favorably to pursue mergers and acquisitions aimed at long-term shareholder value.
In a strategic move to deepen its relationship with Crypto.com, Trump Media acquired over 684 million CRO tokens, financed by $50 million in cash and $47 million in common stock. This acquisition is part of a larger collaboration, which includes integrating CRO rewards into the Truth Social media platform and creating what is touted as the “first and largest publicly traded CRO treasury company.” This initiative came about through a definitive agreement with Crypto.com and Yorkville Acquisition Corp.
Beyond Trump Media’s activities, President Donald Trump and his family are involved in various cryptocurrency ventures, including the World Liberty Financial DeFi and stablecoin project and an American Bitcoin mining company. The Financial Times estimates that the Trump family has amassed over $1 billion from these various crypto-related projects, indicating a significant involvement in the digital asset space.
