Trump Media & Technology Corp. (NASDAQ:DJT) sustained significant losses in Q1 and its cryptocurrency holdings are largely to blame.
The Truth Social parent on May 8 reported a $406 million loss in Q1, including $244 million in unrealized digital asset losses, wider than the $32 million loss reported for the same period last year.
Trump Media is 41% owned by the Donald J. Trump Revocable Trust, a legal entity that holds and manages President Donald Trump‘s assets while he is in office.
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The company said it held 9,542.16 Bitcoin, purchased at a cost of over $1.1 billion, with a fair value of $647 million as of March 31. It also reported holding 756 million Cronos tokens at a cost basis of nearly $114 million and a fair value of about $53 million.
The losses come as the cryptocurrency market has endured a significant correction from last year’s highs. Bitcoin, for example, has fallen as much as 52% below its record price of $126,000 reached in October to a low of $60,000 in February.
Meanwhile, Trump Media reported about $871,000 in revenue in Q1, 6% up from $821,000 reported last year.
Trump Media also reported $2.2 billion in assets and $17.9 million in operating cash as of March 31.
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“Trump Media is using its strong balance sheet and positive operating cash flow to continue growing all our businesses and platform infrastructure,” Interim CEO Kevin McGurn said in a statement.”We’re identifying new growth opportunities and new ways to increase shareholder value.”
McGurn said Trump Media was working to finalize its merger with nuclear fusion company TAE Technologies announced in December. The company said it is working on new features for its Truth Social and Truth+ platforms, including discussion and share features for prediction market contracts and expanded live TV offerings.
Trump Media stock is down over 90% since 2022.
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