Trump Media & Technology Group’s stock now trades around $8.93. That number tells a story on its own. The parent company of Truth Social once peaked at $97.50 a share back in early 2022, and it has shed more than 90% of its value since then.
CEO Devin Nunes stepped down on April 22, adding leadership uncertainty to a company already under financial pressure.
A Bad Deal Gets Worse756 million Cronos tokens sit on Trump Media’s books, purchased for close to $114 million as part of a deal with Crypto.com. By March 31, those tokens were valued at just $53 million — less than half what the company paid.
At quarter-end, the 9,542 Bitcoin it held carried a cost basis of $1.13 billion but a fair value of only $647 million — a gap of nearly $500 million. Bitcoin has since climbed back above $80,000, pushing the position’s value closer to $770 million.
That figure includes $810,100 in media revenue and $61,100 in management fees tied to Truth.Fi ETF offerings. For a publicly traded company sitting on over $2 billion in total financial assets, the revenue line is thin.
The company did manage to generate nearly $18 million in operating cash flow during the quarter, helped by selling options on its pledged Bitcoin holdings.
Of its total Bitcoin position, 4,260 BTC has been pledged as collateral for convertible notes, and another 2,000 BTC is held against covered call options as a hedge.
Featured image from Thomas Fuller/SOPA Images/LightRocket via Getty Images, chart from TradingView
