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Trump Media Eyes Digital Asset Growth: Bitcoin, Cronos, and Strategic Acquisitions
Trump Media and Technology Group faced a challenging third quarter as its Bitcoin and crypto holdings weren’t enough to offset rising costs, reporting a $54.8 million net loss, up from $19.3 million in the same period last year. The company, behind the Truth Social platform, revealed revenues of $972,900, slightly below the previous year’s figures. Shares in Trump Media (DJT) closed at $13.10 on Friday, with a minor after-hours uptick to $13.20.
Bitcoin and Cronos Investments Generate Income
As of September 30, Trump Media held 11,542 BTC valued at around $106,001 each. The company began acquiring Bitcoin in May after raising $1.5 billion from stock sales and $1 billion via convertible senior secured bonds. Bitcoin-related activities generated $15.3 million in realized income, while the company also reported $33 million in unrealized gains from holding over 746 million Cronos (CRO) tokens, which were trading near $0.18 at the end of September.
Ambitious Cronos Acquisition Plans
Trump Media has entered a strategic partnership with Crypto.com and Yorkville Acquisition Corp to form Trump Media Group CRO Strategy, a digital asset treasury entity. The plan includes acquiring up to $1 billion in Cronos, representing over 6.3 trillion tokens, aimed at boosting long-term shareholder value. CEO Devin Nunes highlighted that these assets, combined with two consecutive quarters of positive operating cash flow, position the company to pursue mergers and acquisitions effectively.
Stock Struggles Amid Growing Crypto Treasury
Despite a significant increase in total financial assets—from $274 million in March 2024 to $3.1 billion by September 30—Trump Media’s stock has struggled, down 61% year-to-date. While Bitcoin and Cronos investments have bolstered the balance sheet, investor confidence remains cautious as the company navigates rising costs and broader market volatility.
