Financial Performance and Stock Decline
Trump Media and Technology Group, the media conglomerate backed by President Donald Trump, reported a $54.8 million net loss for the third quarter, according to newly released financial statements. Despite steady asset growth, this marks the company’s third straight quarterly loss, highlighting the financial strain of its expanding operations and legal commitments.
Shares of DJT fell over 3% to $12.90 following the report, deepening a month-long decline of nearly 25% and extending a 62% loss for the year. The continued slump reflects investor unease as the firm navigates mounting expenses and market headwinds.
Factors Contributing to Losses
Part of the quarterly loss stemmed from $20.3 million in legal costs tied to Trump Media’s lengthy merger with a special purpose acquisition company. The company described the merger as “one of the longest SPAC deals in history,” emphasizing the substantial legal fees incurred throughout the process.
Additionally, Trump Media disclosed $54.1 million in non-cash losses resulting from shifts in the fair value of its digital assets, non-cash stock-based compensation, and unrealized trading losses. These accounting adjustments have weighed heavily on reported earnings, even as the company’s underlying asset value remains stable.
Rising Crypto Exposure and Strategic Alliances
Beyond its core media operations, Trump Media has significantly deepened its involvement in cryptocurrency markets. The firm reported earning $15.3 million from bitcoin-related option premiums during the quarter, highlighting income from its “unique bitcoin strategy.” It currently holds approximately 15,000 BTC, valued at about $1.5 billion, representing nearly half of its total $3.1 billion in assets.
In a further show of its digital ambitions, the company purchased more than 684 million CRO tokens during the quarter. The acquisition, funded through a combination of $50 million in cash and $47 million in stock, strengthens its partnership with Crypto.com. Trump Media is now developing Truth Predict, a betting market powered by the exchange, while integrating CRO rewards into its Truth Social platform.
CEO Devin Nunes noted that with assets generating income and positive operating cash flow, the company is preparing to pursue mergers and acquisitions targeting high-value digital assets. Trump Media’s new venture, CRO Strategy, Inc., aims to become the first publicly traded firm managing a large CRO treasury.
Outlook
Trump Media’s growing crypto exposure and digital investments signal a bold pivot toward blockchain-based operations. However, with continued quarterly losses and ongoing market volatility, the company faces pressure to convert these ambitious strategies into long-term profitability.