Key Takeaways

• The firm generated $15.3 million in realized income from Bitcoin options and posted $33 million in unrealized gains from holding more than 746 million Cronos 
• Trump Media and Technology Group (TMTG), the operator of Truth Social, reported a net loss of $54.8 million in the third quarter, widening from $19.3 million a year earlier.

In a significant development, Trump Media and Technology Group (TMTG), the operator of Truth Social, reported a net loss of $54.8 million in the third quarter, widening from $19.3 million a year earlier. The company said rising costs offset gains from its Bitcoin and Cronos holdings.

Revenue fell to $972,900, compared with just over $1 million during the same period last year. Shares of Trump Media (DJT) closed Friday at $13.10, down 1.73%, before edging slightly higher after hours to $13.20.

TMTG reported holding 11,542 Bitcoin as of September 30. The company first announced its Bitcoin investment strategy in late July, saying it was designed to protect the firm from what it described as “harassment and discriminatory treatment” by banks and financial intermediaries.

The firm generated $15.3 million in realized income from Bitcoin options and posted $33 million in unrealized gains from holding more than 746 million Cronos (CRO ($0.13)), the native token of the Cronos blockchain. At the end of September, CRO traded around $0.18.

Trump Media established Trump Media Group CRO Strategy Inc. earlier this year with Crypto.com and Yorkville Acquisition Corp. The new entity aims to become the largest publicly traded CRO treasury company by market capitalization. It is expected to acquire up to $1 billion in Cronos, equivalent to more than 6.3 trillion tokens, according to the company’s Q3 report.

The partnership will also introduce a new rewards feature for Truth Social and Truth+ users, allowing subscribers to earn and convert “Truth gems” into CRO via Crypto.com’s wallet network.

In a statement, CEO Devin Nunes said the third quarter was “crucial to Trump Media’s expansion plans,” citing the company’s “massive Bitcoin treasury” and growing platforms.

He added that with its financial assets climbing from $274 million in March 2024 to $3.1 billion as of September 30, the company is positioned to act on its mergers and acquisitions strategy. “We’re well-poised to act on our M&A strategy by acquiring one or more of the crown jewel assets we’re evaluating,” Nunes said.

Despite these developments, Trump Media’s stock has dropped 61% year-to-date, reflecting investor concerns.