Trump Media & Technology Group (DJT) reported a first-quarter net loss of $405.9 million on revenue of $871,200, up from $31.7 million a year earlier, as unrealized losses on its crypto holdings weighed on 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 related primarily to equity securities.
Trump Media held 9,542.16 bitcoins at the end of March, with a cost basis of $1.13 billion and a fair value of $647.1 million, the company wrote in an SEC filing. This position is now worth approximately $770 million.
The company also held 756.1 million with a cost base of $113.9 million and a fair value of $53 million. Trump Media completed the purchase of $105 million in CRO last year in 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 collateralized bitcoin and bitcoin-related securities.
Part of the company’s bitcoin is blocked. Trump Media said 4,260.73 BTC, worth $289 million at the end of the quarter, served as collateral for the convertible notes.
DJT also held covered call options on 4,000 BTC with a counterpart to hedge its exposure to cryptocurrency volatility. These options require holding 2,000 BTC as collateral with the counterparty.
The company raised $2.5 billion for a Bitcoin treasury strategy last year, then disclosed a $2 billion Bitcoin stack in July.
Revenue increased 6% from $821,200 a year earlier. Media revenue was $810,100, while Truth.Fi generated $61,100 in management fees related to ETF offerings.
