Trump Media to revamp crypto treasury strategy after $238M Q2 loss
Trump Media says it will take a more disciplined approach to its crypto treasury while directing more resources toward its core media business.
Trump Media, the company behind Truth Social and Truth+, announced a shift in its crypto treasury strategy after reporting a $238 million net loss in the second quarter. The company attributed the losses to unrealized losses on crypto and securities. Trump Media aims to take a more disciplined approach to its digital asset treasury while allocating more resources towards its core media business.
The company currently holds 9,477.16 Bitcoin, down from 9,542.16 BTC in the previous quarter. As of June 30, it had pledged 2,077.34 BTC as collateral for its options strategy, with 4,260.73 BTC serving as collateral for convertible notes. Trump Media is exploring various strategies to manage Bitcoin volatility and generate income, including deploying some Bitcoin through lending and yield-generating arrangements.
The company has warned that these strategies carry counterparty credit risk, and there is a potential loss of its assets in case of defaults by third parties.
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