Trump Media’s Bitcoin position falls to about $1.17 billion

Chief Financial Officer Phillip Juhan said on the company’s Monday earnings call that Trump Media bought 4,359 BTC during the quarter, partly using proceeds from selling some of its Bitcoin ETF holdings. The net increase was smaller after other portfolio transactions. By September 30, the company also held seven million shares of BlackRock’s iShares Bitcoin Trust, or IBIT.

A November 9 SEC filing put the Bitcoin holdings’ September 30 value at approximately $1.31 billion, when Bitcoin traded near $83,500. The November 10 estimate of about $1.17 billion excludes the separate IBIT investment. The filing recorded 4,263.94 BTC as digital assets, with a $321.3 million cost basis and $356.3 million fair value. Another 11,385.20 BTC was pledged to the company’s Bitcoin Yield Management Program and accounted for separately.

The company said it uses covered options and other arrangements with institutional counterparties to generate income from some of its Bitcoin. Its filing says counterparties may reuse pledged coins as collateral, a practice known as rehypothecation, creating a risk that assets could not be recovered if a counterparty defaults. At September 30, covered-call options referenced 4,838.40 BTC and covered-put options referenced 1,500 BTC. The filing did not name the counterparties.

Trump Media reported third-quarter net income of $409.7 million, compared with a $54.8 million loss a year earlier. It attributed most of the profit to $496.1 million in net realized and unrealized gains involving digital assets, pledged assets and equity securities. Derivatives losses and other expenses totaled $54 million, while adjusted EBITDA remained negative at $12.3 million. Revenue rose 205% to $3 million.

The company also reported $1.8 million in subscription revenue growth from Truth API and Truth+, and $200,000 in management fees from Truth.Fi products. It is pursuing a merger with TAE Technologies; the SEC declared the merger registration statement effective on November 5. Shareholders of record on November 2 are eligible to vote at a December 14 meeting. Completion remains subject to required approvals and closing conditions.