Trump Media Revamps Bitcoin Treasury Strategy After $238 Million Q2 Loss
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Highlights:
- Trump Media wants to keep holding Bitcoin but manage its crypto investments more carefully.
- The company increased its Bitcoin holdings after changing its investment strategy.
- The company is also putting more focus on growing Truth Social and its other businesses.
Trump Media & Technology Group reported a $238.1 million net loss during the second quarter after declining digital asset and equity security valuations reduced its investment portfolio. During the quarter, the company recorded $190.4 million in unrealized losses across digital assets, pledged digital assets and equity securities.
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Trump Media Plans Major Crypto Treasury Reset After $238M Loss
Trump Media plans to revamp its digital asset treasury strategy after a $238 million Q2 net loss.
The company reported $190.4 million in unrealized losses across digital assets and securities.
Trump Media said the… pic.twitter.com/95UzWXMavZ
— BSCN (@BSCNews) August 11, 2026
In response, Trump Media introduced a more disciplined digital asset treasury framework. The company said the new strategy will preserve long-term crypto exposure while reducing volatility and improving balance sheet efficiency.
Trump Media generated $1.67 million in second-quarter revenue. The figure increased from $883,300 during the same period last year. Advertising barter agreements, Truth+ Patriot Package subscriptions, and Truth.Fi management fees drove that increase. However, lower advertising revenue from Truth Social offset part of those gains.
Trump Media already uses Bitcoin options to reduce price volatility and earn premium income. The company also lends part of its Bitcoin holdings and places other coins into yield-generating arrangements to increase returns from its treasury assets.
Trump Media spent $25.6 million on legal expenses during the second quarter. Operating activities also used $13.7 million in cash during the period. General and administrative expenses increased to $35.9 million from $28.6 million a year earlier. However, management said most legacy legal matters have reached resolution. Therefore, the company expects future legal expenses to decline.
Trump Media owns Truth Social, Truth+ and Truth.Fi. Donald Trump remains closely linked to the company because the Donald J. Trump Revocable Trust held about 41.1% of its voting power in February.
Trump Media Increases Bitcoin Holdings and Explains the Risks
The company held 9,477.16 Bitcoin on June 30 after slightly reducing its holdings from the previous quarter. The June balance fell by about 65 Bitcoin from the previous total of 9,542.16 Bitcoin. The company valued those holdings at about $557.1 million, although the Bitcoin carried a cost basis of about $1.01 billion. The company also held about 756.1 million CRO tokens valued at roughly $40.6 million.
Trump Media pledged 4,260.73 Bitcoin as collateral for convertible notes that remain restricted until no later than May 2028. The company also pledged another 2,077.34 Bitcoin to support its Bitcoin options strategy.
The company sold $159.6 million in securities tied to Bitcoin investment products during July. Trump Media used those proceeds to purchase additional Bitcoin directly and increased its holdings to about 14,139 Bitcoin, including pledged coins by July 31.
The company also disclosed that it lends part of its Bitcoin to third parties through lending and placement arrangements. The company uses those programs to earn additional income from its treasury holdings. However, Trump Media warned that those strategies expose the company to counterparty credit risk. The company said some counterparties could default during market downturns, liquidity crises or other financial distress.
Company Shifts More Capital to Its Media Business
The Donald Trump owned company said it will direct more capital toward Truth Social, Truth+ and Truth.Fi while reshaping its digital asset treasury strategy. The company announced the move alongside its second-quarter financial results.
In a related development, the company also ended its proposed Trump Media Group CRO Strategy business combination on Aug. 7. However, the company’s existing CRO holdings remain separate from the canceled transaction. Under the purchase agreement, Trump Media can sell up to 68,442,704 CRO tokens from Aug. 26 during the following six months.
TRUMP MEDIA JUST WALKED AWAY FROM A $6.42B CRYPTO TREASURY PLAN
Trump Media, Crypto .com, and Yorkville mutually terminated their planned crypto-com-chain:native treasury vehicle, Trump Media Group CRO Strategy, which had up to $6.42B in contemplated funding capacity.
The… pic.twitter.com/Hx7G1R9DOX
— WOLF Crypto (@WOLF_Crypto_X) August 10, 2026
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