Trump Media revamps crypto treasury after $238M Q2 loss

Trump Media will revamp its digital-asset treasury framework after reporting a $238 million net loss in the quarter ended June 30. The company attributed $190.4 million of that loss to unrealized declines in digital assets, pledged assets and equity securities.

In its Q2 filing, the firm said the new framework is intended to preserve long-term exposure to digital assets while reducing volatility and improving balance-sheet productivity. The filing notes the company already uses option strategies to hedge Bitcoin volatility and generate premium income, and has begun deploying some bitcoin through lending and other yield arrangements.

On June 30, Trump Media held 9,477.16 bitcoin, down from 9,542.16 at the end of the prior quarter. The company reported 2,077.34 BTC had been pledged as collateral for its options strategy and 4,260.73 BTC was serving as collateral for convertible notes. The filing warned that bitcoin committed as collateral or deployed for yield may be restricted from sale or further pledge while held by counterparties.

In July, the company sold $159.6 million of bitcoin-related securities and used the proceeds to buy additional bitcoin. By July 31, reported holdings rose to about 14,139 BTC, including pledged coins, valued at roughly $890.5 million at that time.

The filing flagged counterparty credit risk tied to efforts to earn income on bitcoin. Trump Media reported that some counterparties in lending and placement arrangements may not hold ratings from major agencies and could default during market downturns or liquidity crises. In unsecured arrangements, the company may be unable to recover bitcoin if a counterparty becomes insolvent, and counterparties may use deployed assets at their discretion.

Alongside changes to its treasury plan, the company plans to direct more capital to its media products, including Truth Social, the subscription service Truth+ and financial brand Truth.Fi. The company’s most recent annual report showed U.S. President Donald Trump as the sole beneficiary of a trust that held about 41.1% of the company’s voting power as of Feb. 25.

Company filings indicate management will continue to pursue income-generating strategies tied to bitcoin while implementing additional risk controls for its digital-asset holdings.