TMTG Crypto Bet Results in Massive Quarterly Loss of $238 Million
Trump Media & Technology Group's (TMTG) foray into cryptocurrency has resulted in significant losses. The company, parent to Truth Social, reported a $238 million net loss in the second quarter of this year. This is an increase from last year's $20 million loss.
The 'vast bulk' of this loss came from non-cash charges rather than actual money spent or assets sold, according to TMTG. These charges include over $190 million in unrealized losses across digital assets, pledged digital assets, and equity securities.
TMTG's crypto holdings fell by more than 33% to $598 million by June 30, including $558 million in Bitcoin and $41 million in Cronos. The company attributed this decrease to the volatility of cryptocurrency markets.
Despite these losses, TMTG expects its legal expenses to fall significantly, freeing up resources for growth initiatives.