Bitcoin Treasury Companies Take a Hit as Trump Media Ditches Crypto

Trump Media & Technology Group (NASDAQ: DJT), majority-owned by President Donald Trump, made headlines last summer when it announced plans to transform itself into a Bitcoin (BTC) treasury company.

The company's decision was seen as a bold move in the cryptocurrency space, and its initial foray into Bitcoin seemed promising. However, with the price of BTC in decline for over 10 months now, Trump Media is reporting staggering losses on its crypto holdings.

According to recent figures, the company has suffered a $190 million paper loss on its Bitcoin investments, largely due to the fact that it bought at the peak of the market. This has prompted Trump Media to pivot away from Bitcoin and back into its core business of media and advertising.

This development may signal the end of the Bitcoin treasury company model, with Strategy (NASDAQ: MSTR) also reporting significant losses on its BTC holdings. The company's nearly $10 billion paper loss is a stark reminder that trying to time the crypto market can be futile.