Trump Media’s Q1 loss widens to $406 million on bitcoin, CRO markdowns
The loss was primarily driven by $244 million in unrealized losses on cryptocurrency holdings and an additional $108.2 million investment loss.
What to know:
- Trump Media reported a Q1 net loss of $405.9 million on $871,200 in revenue, widening significantly from $31.7 million a year earlier.
- The loss was primarily driven by $244 million in unrealized losses on cryptocurrency holdings and an additional $108.2 million investment loss.
- As of March, DJT held 9,542.16 bitcoin (valued at $647.1 million) and 756.1 million Cronos (CRO) tokens (valued at $53 million).
Trump Media held 9,542.16 bitcoin at the end of March, with a cost basis of $1.13 billion and a fair value of $647.1 million, the firm wrote in a filing with the SEC. That position is now worth around $770 million.
The company also held 756.1 million with a cost basis of $113.9 million and a fair value of $53 million. Trump Media closed the purchase of $105 million in CRO last year as part of 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 pledged bitcoin and bitcoin-related securities.
A portion of the firm’s bitcoin is locked up. Trump Media said 4,260.73 BTC, worth $289 million at quarter-end, served as collateral for convertible notes.
