Trump Media posts third straight loss as SPAC legal fees mount, CRO holdings rise

Quick Take

• Trump Media and Technology Group posted its third straight net loss on Friday despite “earning significant income from its unique bitcoin strategy” and CRO token accumulation plans.

Trump Media and Technology Group, the Nasdaq and NYSE Texas-listed media conglomerate backed by the president of the United States, reported a $54.8 million net loss in the third quarter, according to financial results published on Friday.

This represents Trump Media’s third consecutive quarter of losses. Shares of DJT are down over 3% to $12.90, contributing to a sustained decline that has seen the stock drop nearly 25% over the past month and over 62% year-to-date, according to Google Finance.

The firm’s Q3 loss stems in part from its $20.3 million in legal bills, primarily related to Trump Media’s 2024 merger with a special purpose acquisition company, which the company refers to as “one of the longest SPAC deals in history,” resulting in “substantial legal costs.”

Trump Media also reported $54.1 million in non-cash losses from changes in the fair value of its digital asset holdings, non-cash interest expenses, non-cash stock-based compensation, unrealized losses on trading securities and unexpired option contracts, and depreciation and amortization.

That said, the firm is “earning significant income from its unique bitcoin strategy,” generating $15.3 million from bitcoin-related option premiums during the quarter. In total, Trump Media reported having $3.1 billion in assets — the same as last quarter — comprising cash, short-term investments, securities, and 15,000 BTC worth about $1.5 billion acquired beginning in May.

“With these financial assets now earning income, alongside our second consecutive quarter of positive operating cash flow, we’re well-poised to act on our mergers and acquisitions strategy by acquiring one or more of the crown jewel assets we’re now evaluating, with an eye toward those that will bring the most long-term value for our shareholders,” Trump Media CEO and President Devin Nunes said in a statement.

In Q3, Trump Media purchased over 684 million CRO, funded by $50 million of cash and $47 million of common stock, as part of an ongoing relationship with Crypto.com, earlier announcing that the exchange would power its upcoming Truth Predict betting market.

Additionally, Trump Media is integrating rewards into its Truth Social social media platform and building “the first and largest publicly traded CRO treasury company,” the Trump Media Group CRO Strategy, Inc., formed through a definitive agreement with Crypto.com and Yorkville Acquisition Corp.

Trump Media is far from President Donald Trump’s only crypto-related effort. The sitting president and his sons are also associated with the World Liberty Financial DeFi and stable coin project, as well as the American mining company and other projects.

The Financial Times estimates the family has earned over $1 billion through its various crypto ventures.