Trump Media Q3 Loss $54.8M Amid Crypto Investment Woes
Trump Media & Technology Group (TMTG) reported a third-quarter net loss of $54.8 million, nearly triple year-ago levels, as revenue fell 3.8% to $972,900 and legal expenses surged to $20.3 million. Trump Media’s shares plunged over 3% in after-hours trading and have declined more than 62% year-to-date, closing at $12.90. During the quarter, Trump Media invested $2 billion in Bitcoin at an average price of around $118,000 per BTC, only for its holdings to lose value as Bitcoin dipped to about $103,000. The company also unveiled a $6.4 billion crypto venture with Yorkville Acquisition and Crypto.com to accumulate Cronos tokens, mirroring institutional BTC strategies, though its existing CRO positions have also weakened. Transparency on Truth Social user metrics remains limited. Controversies around a proposed U.S. Crypto Strategic Reserve, President Trump’s pardon of Binance’s CZ, and significant stock awards for CEO Devin Nunes amid ongoing cash burn have raised governance and insider-trading concerns. Traders should weigh Trump Media’s heavy crypto exposure and rising costs against market volatility and uncertain long-term value creation.
Bearish
The significant net loss, revenue decline, and surging legal costs signal financial strain at Trump Media, while its aggressive $2 billion Bitcoin and $6.4 billion Cronos acquisitions amid market downturn highlight heightened exposure to crypto volatility. Traders may interpret these results as indicators of potential sell pressure if TMTG liquidates assets to cover cash shortfalls. Governance concerns, from undisclosed Truth Social metrics to insider-related controversies, could further dampen investor confidence. In the short term, selling risks may intensify price dips, and long-term uncertainty around the company’s ability to hold large crypto positions suggests ongoing bearish pressure on market sentiment.