Trump Media & Technology Group reported a net loss of $405.9 million for the first quarter, compared to a $31.7 million loss a year earlier. The parent company of Truth Social generated $871,200 in revenue, up 6% from $821,200 in the prior year.
Key Financial Details
The loss included $244 million in unrealized losses on cryptocurrency holdings and a $108.2 million investment loss tied mostly to equity securities.
- Media revenue was $810,100; Truth.Fi generated $61,100 in management fees from ETF offerings.
- Operating cash flow was $17.9 million, helped by the sale of put options on pledged bitcoin and related securities.
Cryptocurrency Holdings
As of March 31, Trump Media held 9,542.16 bitcoin (BTC) with a cost basis of $1.13 billion and a fair value of $647.1 million. That position is now worth around $770 million.
The company also held 756.1 million CRO tokens with a cost basis of $113.9 million and a fair value of $53 million. The CRO purchase was part of a Crypto.com deal tying the token to Truth Social and Truth+ rewards.
A portion of bitcoin is locked: 4,260.73 BTC served as collateral for convertible notes. DJT held covered call options on 4,000 BTC to hedge volatility, requiring 2,000 BTC as collateral with the counterparty.
Background
The company raised $2.5 billion for a bitcoin treasury strategy last year and disclosed a $2 billion bitcoin stack in July.