Trump Media and Technology Group (DJT) announced a $54.8 million net loss for the third quarter on November 7. This marks the company’s third consecutive quarterly loss.
The firm cited high legal expenses and non-cash losses linked to its digital assets as major factors behind the decline.
Trump Media Faces Heavy Legal Costs
DJT, the media company backed by U.S. President Donald Trump, reported $20.3 million in legal expenses during the quarter. This is mainly connected to its lengthy merger with a special purpose acquisition company (SPAC). These legal costs have continued to put pressure on the firm’s bottom line.
Trump Media also recorded $54.1 million in non-cash losses. These losses came from changes in the fair value of its crypto holdings, unrealized losses on securities and options, stock-based compensation, and depreciation.
Despite this, the company highlighted $15.3 million earned from Bitcoin-related option premiums during the quarter. This showed some positive results from its digital asset strategy.
The company currently holds roughly 15,000 BTC, valued at about $1.5 billion. This is part of a $3.1 billion asset portfolio that also includes cash, short-term investments, and trading securities.
Trump Media Shares Drop Amid Crypto Investments
Following the earnings report, Trump Media shares fell over 3% to $12.90. This extended a decline of nearly 25% over the past month and more than 62% year-to-date.
Analysts say the stock’s ups and downs show doubts about the company’s ability to make money. Most of the trading is done by regular, everyday investors, and the digital asset strategy is seen as risky.
CEO Devin Nunes emphasized that the company’s financial assets are now generating income and pointed to a second consecutive quarter of positive operating cash flow. He highlighted plans to pursue mergers and acquisitions to acquire “crown jewel assets” under evaluation.
During the third quarter, Trump Media purchased 684 million CRO tokens, spending $50 million in cash and $47 million in stock, strengthening its partnership with Crypto.com.
The company plans to add CRO rewards to its Truth Social platform. It will also create Trump Media Group CRO Strategy, Inc. to manage its holdings with Crypto.com and Yorkville Acquisition Corp.
The company called this new entity the first and largest publicly traded CRO treasury company. This reflects its goal to grow Truth Social into a larger crypto-focused media ecosystem.
Trump Family’s Ongoing Crypto Involvement
Trump Media’s ventures in crypto are part of a larger involvement by the Trump family in digital assets. President Trump and his sons are connected to projects like World Liberty Financial (WLFI), a decentralized finance and stablecoin initiative. They are also involved with American Bitcoin Mining.
Reports suggest the family has earned over $1 billion from various crypto ventures to date. This highlights their growing footprint in the digital asset space.