Trump Media Reports $405.9 Million Loss Due to Crypto Holdings
- Trump Media & Technology Group (DJT) reported a net loss of $405.9 million in Q1, up from a $31.7 million loss the previous year.
- The company recorded $244 million in unrealized losses on its cryptocurrency holdings, primarily bitcoin.
- At the end of March, Trump Media held 9,542.16 bitcoin valued at approximately $647.1 million against a cost basis of $1.13 billion.
- Additionally, it held 756.1 million CRO, with a fair value of $53 million compared to a cost basis of $113.9 million.
- The firm reported an operating cash flow of $17.9 million for the quarter, aided by sales of bitcoin-related securities.
The significant losses highlight the impact of cryptocurrency volatility on traditional business models, as seen with Trump Media’s substantial markdowns on its crypto assets.
The company’s total revenue was reported at $871,200, reflecting a slight increase from the previous year’s figures.
Overall, Trump Media’s Q1 results underscore the challenges faced due to unrealized losses in its crypto portfolio, particularly with bitcoin. The firm’s current bitcoin position is now valued around $770 million.(Source)
