Trump Media & Technology Group, the parent company of Truth Social, posted a net loss of $238.1 million in the second quarter of 2026. According to the report announced on August 10, this loss was dominated by $190.4 million in unrealized losses from its digital asset portfolio, pledged digital assets, and equity securities.
However, the main story is not just about the negative numbers on the financial report, but rather the fate of their crypto asset holdings.
Locked, Pledged, and Loaned
As of July 31, 2026, the company, in which Donald Trump controls 41.1% of the voting power through a trust with Donald Trump Jr. as trustee, held 14,139 BTC. Its value surpassed $890.5 million. The issue is that these funds are not entirely free to be touched.
A total of 4,260.73 BTC must be locked as collateral for convertible notes and cannot be sold until May 2028. Elsewhere, 2,077.34 BTC are pledged to run a Bitcoin options trading strategy. Trump Media has even put some of its coins to work by lending them to third parties to generate yield. This asset lending move carries risks, ranging from the lack of government insurance protection to the potential for counterparties to rehypothecate, or re-pledge, their Bitcoin.
Revenue Rises Slightly, CRO Deal Canceled
Their core operational performance also remains sluggish. Second-quarter revenue only reached $1.67 million. While this is an 89% increase from $883,300 in the same period last year, supported by barter advertising, Truth.Fi management fees, and subscriptions to the Patriot Truth+ package, general and administrative expenses also bloated from $28.6 million to $35.9 million.
This second-quarter loss continues a negative trend from the first quarter of 2026, which recorded a loss of $405.9 million. Amid this financial situation, the company’s treasury strategy has also shifted direction. On August 7, Trump Media canceled an agreement related to the CRO token with Crypto.com and Yorkville. Nevertheless, starting August 26, they retain the right to sell up to 68,442,704 CRO tokens over the next six months.
Year-End Merger Plans
To improve its business position, the company aims to complete a business combination with TAE Technologies in the fourth quarter of 2026. Rencana ini belum final karena masih menunggu persetujuan dari pihak regulator. This plan is not yet finalized as it is still pending regulatory approval.
For investors, Trump Media’s 14,139 BTC reserves are now no longer a pure hedge, but rather a web of financial maneuvering already tied up in debt and loans. Reported by crypto.news.
Also read: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
