Trump Media Abandons Crypto Bet Amidst $190 Million Paper Loss
Trump Media, majority-owned by President Donald Trump, is walking back its crypto bet after sustaining a $190 million paper loss on its Bitcoin holdings. The company's decision to pivot away from cryptocurrency and return to its core media and advertising business comes as the market downturn wipes out hundreds of millions of dollars in value.
Trump Media holds 12,062 Bitcoins, worth roughly $755 million at current prices. However, the prolonged decline in Bitcoin's price has led to a significant loss for the company, which is now redirecting its strategy back to its original operations instead of expanding its crypto treasury.
This move highlights the risks and volatility associated with holding large amounts of cryptocurrency on a corporate balance sheet. As Strategy, another prominent Bitcoin treasury company, faces nearly $10 billion in paper losses, Trump Media's experience serves as a cautionary tale for investors watching how public companies handle crypto exposure.