Trump Media & Technology Group reported a $405.9 million net loss for the first quarter of 2026 on revenue of $871,200, with the bulk of the red ink tied to its newly built cryptocurrency treasury. The parent of Truth Social booked roughly $244 million in unrealized losses on its bitcoin and Cronos (CRO) holdings and another $108.2 million in losses on equity securities, transforming a small money-losing operating business into one of the most visible cautionary tales of the corporate bitcoin treasury trend. The company disclosed the figures in a 10-Q filing late Friday and discussed them in an earnings update on May 9.
A bitcoin treasury company is a publicly traded firm that uses its balance sheet to hold bitcoin as a primary reserve asset, often financed by issuing equity or convertible debt. Trump Media adopted the strategy in 2025 after raising about $2.3 billion in a stock-and-convertible-note placement.
Key takeaways
- Trump Media reported a $405.9 million Q1 net loss, with roughly $352 million tied to crypto and equity write-downs.
- The company holds 9,542.16 BTC at an average cost of about $108,519, against a March 31 fair value of $647.1 million, a paper gap of nearly $483 million.
- It also holds 756.1 million CRO with a $113.9 million cost basis and a $53 million fair value.
- Roughly 6,260 BTC are pledged as collateral for convertible notes and covered call options, limiting flexibility to sell.
Published: May 10, 2026 16:00 UTC
What happened in the quarter
Trump Media’s headline number was a $405.9 million net loss, sharply wider than the $31.7 million loss it posted a year earlier. Operating revenue barely moved, rising 6% to $871,200, with $810,100 from media and $61,100 in management fees from its Truth.Fi exchange-traded products. The crypto positions, by contrast, swung the entire result.
The company disclosed $244 million in unrealized losses on its digital asset holdings during the quarter and an additional $108.2 million loss on equity securities. Operating cash flow was positive at $17.9 million, helped by the sale of put options on pledged bitcoin. Most of the rest of the loss flowed through other comprehensive income because Trump Media marks its crypto assets to fair value under the FASB rules adopted in 2024.
Shares of DJT have fallen roughly 90% from their 2024 peak. The crypto markdown does not by itself force any sale of bitcoin or CRO, but it does compress book value and tighten the margin around pledged collateral.
Inside the bitcoin position
The 10-Q discloses 9,542.16 BTC at quarter-end, acquired at an average cost of roughly $108,519 per coin. That basis was set in the second half of 2025, when bitcoin briefly traded above $120,000. With BTC closing the quarter near $67,800 and trading above $80,000 in early May, the position shows a $1.13 billion cost basis against a $647.1 million March 31 fair value. The current mark near $770 million still leaves about $360 million in unrealized losses against cost.
The collateral structure is central. According to the filing, 4,260.73 BTC are pledged against convertible notes, with about $289 million backing the debt at quarter-end. Another 2,000 BTC sit as collateral for covered call options used to generate option premium. More than 65% of the bitcoin stack is encumbered, restricting how much could be sold without unwinding hedges or refinancing notes.
The CRO bet inside the deal
Trump Media’s other large crypto position is Cronos, the native token of the Crypto.com chain. The company acquired 756.1 million CRO at a $113.9 million cost basis as part of a partnership with Crypto.com that ties the token to Truth Social and Truth+ rewards. At quarter-end, the position was marked at $53 million, a roughly $61 million paper loss. CRO is a much less liquid asset than bitcoin and has no equivalent of regulated futures or options markets that would allow the company to hedge in size.
Why it matters for corporate treasuries
The Q1 result frames an issue many corporate treasurers have raised over the past year. Under FASB ASU 2023-08, public companies that hold crypto must mark it to fair value through earnings each quarter. That rule, which the treasury cohort initially welcomed for replacing the old impairment-only model, also forces full mark-to-market volatility through the income statement. For an operating business with under $1 million in quarterly revenue, even a modest crypto drawdown can produce nine-figure reported losses.
Trump Media’s experience also illustrates the difference between Strategy (formerly MicroStrategy), which built its position over five years and now holds more than 580,000 BTC at a far lower average cost, and a newer entrant that bought a concentrated stake near a cycle high. Trump Media’s average cost above $108,000 leaves a narrow margin.
What comes next
The next pressure point is the convertible note structure. With 4,260 BTC pledged, a sustained move in bitcoin would shift the collateral coverage ratios disclosed in the indenture. Trump Media has not signaled plans to sell, and CEO Devin Nunes has previously described the bitcoin position as a long-term reserve. Investors will look at the Q2 filing to see whether the company adds, holds, or trims the position, and whether covered call positions are rolled or closed.
For the broader bitcoin treasury cohort, now more than 60 public companies, Trump Media’s print is a live test of how Wall Street prices crypto-heavy balance sheets when prices retrace.
Frequently asked questions
How much bitcoin does Trump Media hold?
Trump Media disclosed 9,542.16 BTC on its balance sheet at the end of Q1 2026, acquired at an average cost of about $108,519 per coin. The cost basis is roughly $1.13 billion, and the position was marked at $647.1 million on March 31. About 6,260 BTC of the stack is pledged as collateral for convertible notes and covered call options.
Why did the loss show up as $244 million in unrealized crypto losses?
Under FASB rule ASU 2023-08, public companies must mark crypto holdings to fair value each quarter and run the change through earnings. Trump Media’s BTC and CRO positions both fell during Q1, generating $244 million in unrealized losses that flowed through the income statement even though no coins were sold.
How does Trump Media compare to Strategy as a bitcoin treasury company?
Strategy holds more than 580,000 BTC built up over five years at a much lower average cost. Trump Media holds 9,542 BTC bought during 2025 at an average cost above $108,000, which is close to the recent cycle high. That higher cost basis makes Trump Media’s position more sensitive to drawdowns and explains the scale of the Q1 markdown.
