Trump Media Abandons Bitcoin Amidst $190 Million Loss
Trump Media & Technology Group, majority-owned by President Donald Trump, recently announced its pivot away from Bitcoin due to significant losses. The company holds 12,062 Bitcoins, worth nearly $755 million at today's prices, but has reported a $190 million paper loss on its crypto holdings.
The decline in Bitcoin's price over the past 10 months has contributed to this loss. Trump Media initially announced plans to transform itself into a Bitcoin treasury company last summer, but is now shifting back to its core business of media and advertising.
This move comes amidst a broader shakeout of top digital asset treasury companies. Strategy, for example, reported a nearly $10 billion paper loss on its Bitcoin holdings in the past quarter. The company acquired 840,447 BTC at an average price of $75,482, but the current price of Bitcoin is around $63,000.
Crypto investors are being warned that trying to time the market is ultimately futile. Trump Media's experience serves as a cautionary tale, highlighting the risks of buying and selling cryptocurrencies based on short-term market fluctuations.