Financial Performance and Cryptocurrency Investments
Trump Media and Technology Group held 11,542 Bitcoin as of Sept. 30 and flagged plans to buy more, along with considering the acquisition of other similar cryptocurrencies, according to its third-quarter earnings.
The company, which operates the Truth Social social media platform, reported a $54.8 million net loss in Q3, widening from the $19.3 million in losses compared to the same time last year. Revenues came in at $972,900, down from over $1 million a year ago.
Trump Media generated $15.3 million of realized income from its Bitcoin options investments and posted $33 million in unrealized gains from holding over 746 million Cronos. At the end of September, Cronos was trading around $0.18. The native token of the Cronos blockchain represented a significant portion of the company's crypto holdings.
Strategic Outlook and Future Acquisitions
CEO and president Devin Nunes said in a statement that the third quarter was crucial to Trump Media's expansion plans. "We have secured our financial future with a massive Bitcoin treasury, and expanded our existing platforms," he stated.
The company first announced it would start buying Bitcoin in late July after raising $1.5 billion from stock sales and $1 billion from convertible senior secured bonds. Trump Media acquired Bitcoin as part of an investment strategy it began in May.
Trump Media entered into an agreement with crypto exchange Crypto.com and Yorkville Acquisition Corp in August to establish Trump Media Group CRO Strategy. This digital asset treasury company focuses on acquiring Cronos, with plans to buy up to $1 billion in Cronos, representing over 6.3 trillion tokens.
The company's financial assets have grown from $274 million in March 2024, when it went public, to $3.1 billion as of Sept. 30. "With these financial assets now earning income, alongside our second consecutive quarter of positive operating cash flow, we're well-poised to act on our mergers and acquisitions strategy by acquiring one or more of the crown jewel assets we're now evaluating, with an eye toward those that will bring the most long-term value for our shareholders," Nunes added.
Stock Performance
Shares in Trump Media (DJT) ended trading on Friday down 1.73% to $13.10, seeing a small bump after-hours to $13.20. The stock has been trending downward, losing 61% year-to-date despite the company's substantial cryptocurrency investments.