Trump Media has once again trimmed its crypto holdings by offloading 2,628 BTC worth $165.07 million. According to on-chain tracking from @lookonchain on X, this latest transaction extends the company’s ongoing sell-off, even as the broader crypto market remains under price pressure.
Today’s hundreds of millions of dollars were not the product of profit-taking, but rather a costly liquidation.
The Burden of an $118,522 Cost Basis per Coin
To understand the magnitude of these losses, one must look at Trump Media’s entry point into the crypto market. During its accumulation phase, the company deployed $1.37 billion in capital to acquire 11,542 BTC. The most vulnerable aspect of this investment was its entry price. The company executed purchases for over ten thousand coins at an average price of $118,522 per BTC. This figure heavily burdens its current balance sheet, given that Bitcoin’s market price remains far below its average purchase price.
Realizing prices were not recovering, the company began liquidating its holdings seven months ago. Over that period, Trump Media has unloaded a total of 7,281 BTC onto the open market. From all the coins sold, the company netted just $545 million in cash. This calculation shows its average selling price dropped to $74,855 per coin. The gap between the initial purchase price and the realized exit price created tens of thousands of dollars in losses for every Bitcoin transferred.
Two Institutions Bleeding Together
This series of below-cost sales has accumulated into a substantial real burden. To date, Trump Media’s losses from its Bitcoin portfolio have surpassed $555 million. The fact that management continues to liquidate assets amid depressed market conditions signals a key priority: the option of waiting for prices to return to $118,000 has been cast aside in favor of securing dollar liquidity as quickly as possible.
The financial blow from falling prices has not hit Trump Media alone. Another major corporate player, MicroStrategy (MSTR), has also seen the value of its holdings tumble. Around the same timeframe, MSTR reportedly suffered a portfolio loss of $8.22 billion. Two major entities that once led the wave of institutional adoption in crypto are now facing the reality that both are bleeding heavily from asset depreciation.
This development shatters the narrative that institutions always maintain foolproof strategies. When market pressure and liquidity needs collide, even the most well-capitalized corporations can be forced to swallow hundreds of millions of dollars in losses. Ultimately, they end up adding further downward pressure on market prices by selling their assets at a loss.
Reported by @lookonchain on X.
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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.
