Trump’s media and crypto firm just posted a $238 million quarterly loss—here’s where those losses came from

In the second quarter of 2026, Trump Media & Technology Group, the media conglomerate under the presidency of Donald Trump, announced a $238 million loss. The majority of the loss, amounting to over $190 million, was attributed to the decline in the value of crypto assets, consisting of Bitcoin, other digital assets and stocks. This loss is primarily due to paper losses; the actual losses would be mitigated should the crypto market rebound.

Trump Media was initially established as the parent company behind the social media platform Truth Social, which debuted in 2022. It later diversified into a crypto-focused holding company, forming partnerships with entities like Crypto.com, a Singapore-based firm. By the end of June 2026, Trump Media held nearly 9,500 Bitcoin, estimated at around $557 million, and over 756 million Cronos tokens, valued at approximately $40 million.

However, the recent downturn in the crypto market, with Bitcoin's price plummeting more than 46% from its peak of $126,000 and Cronos declining around 72%, significantly impacted the value of Trump Media's portfolio. In response, Trump Media has started to divest from its Crypto.com partnership, including a planned publicly traded entity that would have gathered and staked Cronos tokens.

The company's losses are not restricted to crypto, as it also incurred $25.6 million in legal expenses, mainly due to litigation with former partners and executives following its 2024 merger with Digital World Acquisition Corp. Additionally, the company used $13.7 million in operating cash during the first half of the year. Despite this quarterly loss, Trump Media noted positive signs, including a 89% increase in revenue to $1.7 million, driven by the launch of Truth+, a streaming service, and management fees from Truth.Fi, its exchange-traded funds.

The company reported over $1.9 billion in liquid financial assets, providing a substantial buffer against current operating costs. Trump Media affirmed that it has largely resolved legal disputes related to its initial merger, which could reduce future administrative expenses. The company also plans to merge with TAE Technologies, an energy-security infrastructure firm, and revise its Bitcoin strategy to minimize volatility through options and other financial instruments.

The company aims to broaden its revenue streams by expanding its social media and streaming platforms and providing institutional access to data through its Truth API.