Trump Media and Technology Group reported a net loss of $54.8 million. This announcement came during its Q3 Trump Media financial results presentation. The loss occurs despite accumulating a $1.3 billion treasury in Bitcoin. CEO Devin Nunes called the quarter “crucial” for the company’s expansion.
The net losses widened significantly. They grew from the $19.3 million reported in the same period last year. However, the company’s revenues fell. It reported $972,900, a decrease from over $1 million a year ago. As of September 30, the company revealed it held 11,542 Bitcoin. Additionally, the company generated $15.3 million in income from Bitcoin options investments. It also posted $33 million in unrealized gains from holding 746 million Cronos (CRO) tokens.
The venture into cryptocurrencies began in July. It was part of an investment strategy initiated in May. This strategy was financed after raising $1.5 billion from stock sales. It also secured $1 billion from convertible bonds. The company, which operates the Truth Social platform, plans to buy more Bitcoin. It is also considering “the acquisition of other, similar cryptocurrencies” in the future.
Can the massive bet on Cronos reverse DJT’s trend?
The company’s digital asset strategy is expanding aggressively. Trump Media signed an agreement with Crypto.com and Yorkville Acquisition Corp. The goal is to establish the “Trump Media Group CRO Strategy.” This new entity will focus on acquiring Cronos. According to the Q3 results, it is expected to buy up to $1 billion in CRO tokens. This represents over 6.3 trillion tokens. Despite these moves, the stock (DJT) has lost 61% year-to-date. It closed Friday down 1.73% at $13.10.
Devin Nunes remains optimistic about the strategy. He stated the company has “secured our financial future with a massive Bitcoin treasury.” Nunes also highlighted the total financial assets. These grew from $274 million in March 2024 to $3.1 billion as of September 30. “We’re well-poised to act on our mergers and acquisitions strategy,” Nunes said. The focus is now on acquiring assets that will bring the most long-term value for shareholders.
