Trump Media Slams Brakes on Crypto Exposure Amid $238M Q2 Loss

Trump Media, the publicly traded company behind Truth Social and other media ventures tied to US President Donald Trump, reported a $238 million net loss in its second quarter earnings. The company attributed this loss to unrealized losses on crypto and securities, with $190.4 million coming from digital assets, pledged digital assets, and equity securities.

To mitigate future losses, Trump Media plans to revamp its digital asset treasury strategy. This new framework is intended to preserve the company's long-term exposure to digital assets while managing volatility and optimizing its balance sheet productivity.

The company already uses options to manage Bitcoin volatility and generate premium income. It also deploys some of its BTC through lending and other yield-generating arrangements. However, Trump Media warns that these strategies carry counterparty credit risk, which could result in losses if counterparties default during market downturns or liquidity crises.