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Trump Media books a $410 million Q3 profit on bitcoin gains, with about 73% of its BTC pledged to a yield program
Summary
Trump Media & Technology Group reported third-quarter net income of $409.7 million, compared with a $54.8 million loss a year earlier, driven mostly by non-cash gains on digital assets, The Block and Bitcoin Magazine reported.
The Truth Social parent held about 15,649 BTC on Sept. 30, of which about 11,385 were pledged to its bitcoin yield management program, CFO Phillip Juhan said on the earnings call, according to both outlets.
Bitcoin Magazine said the 10-Q shows the program's unnamed counterparty can rehypothecate the pledged coins at its sole discretion, and that nearly all the remaining bitcoin backs $1 billion of convertible notes that holders can put back for cash on Nov. 30.
The Block said the company remains on track to close its merger with fusion firm TAE Technologies by year-end, with a shareholder vote set for Dec. 14.
Updates
- Update, : Decrypt also reported the results, noting $496.1 million in gains on digital assets, pledged crypto and securities, and that DJT traded around $4.20 on Tuesday, down 94.7% from its 2024 peak.
Key facts
- The Block: Q3 revenue was $3 million, up 205% year on year, mainly from $1.8 million of Truth API subscription growth.
- Bitcoin Magazine: the pledged coins had a fair value of $951.4 million at quarter-end, and another 4,260.73 BTC worth $356.1 million is collateral for the convertible notes.
- Bitcoin Magazine: adjusted EBITDA was still a loss of $12.3 million, and the company lost $234.2 million over the first nine months.
- Bitcoin Magazine: interim CEO Kevin McGurn said the note repayment plan is "a mix of cash and credit" rather than new equity, and the 10-Q says there is no assurance a refinancing facility can be obtained on acceptable terms.
- The Block: DJT shares closed up 1.75% at $4.06 on Monday and gained another 1.5% after hours.
- Decrypt: Trump Media recorded $496.1 million in realized and unrealized gains, $378.1 million from digital assets and pledged coins and $118 million from securities, partly offset by derivative losses.
- Decrypt: CFO Phillip Juhan said bitcoin rose about 42% in the quarter, from roughly $59,000 at end-June to $84,000 at end-September.
- Decrypt: DJT traded around $4.20 Tuesday, up about 3.3% on the day but 94.7% below its $79.38 peak in 2024.
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