Trump Media Abandons Bitcoin Bet Amid Prolonged Price Decline

Trump Media's brief foray into Bitcoin has come to an abrupt end. The company, majority-owned by President Donald Trump, had announced plans to become a Bitcoin treasury company last summer. However, after a prolonged decline in the cryptocurrency's price wiped out hundreds of millions of dollars on paper, Trump Media is now walking back its crypto bet.

The company holds 12,062 Bitcoins, valued at nearly $755 million at current prices. This represents a significant loss for Trump Media, with the company disclosing a $190 million paper loss due to the price decline. To put this into perspective, Strategy's Bitcoin holdings have resulted in a nearly $10 billion paper loss.

Trump Media is redirecting its strategy back to its core media and advertising operations, abandoning its plans to expand its crypto treasury. This decision comes as other companies that adopted the Bitcoin treasury model are also rethinking their approach due to the volatility risk associated with holding large crypto reserves on a corporate balance sheet.