Terrill Dicki
May 10, 2026 07:53
Trump Media reported a $405.9M net loss in Q1 2026, with $370M tied to crypto and equity losses, mainly from a significant Bitcoin position.
Trump Media & Technology Group, the parent company of Truth Social, posted a staggering $405.9 million net loss in Q1 2026, according to filings with the SEC. The bulk of that loss—$370 million—came from unrealized losses on Bitcoin and equity investments, underscoring the risks of its aggressive crypto strategy.
The company’s Bitcoin bet, made near last summer’s market peak, accounted for $244 million in unrealized losses. Trump Media purchased approximately 9,500 BTC at an average price of $108,519 per coin, equating to a $1.13 billion cost basis. By March 31, that Bitcoin stash was worth just $647 million, reflecting a $500 million disparity. Bitcoin has since recovered to trade above $80,000, boosting the fair value of those holdings to $770 million, though still below their purchase price.
Trump Media’s woes extend beyond Bitcoin. The company also holds 756 million Cronos (CRO) tokens, acquired for $113.9 million through a Crypto.com partnership. As of quarter-end, these tokens were valued at just $53 million. Compounding matters, 4,260 BTC is pledged as collateral for convertible notes, and an additional 2,000 BTC is tied to covered call options used to hedge market volatility.
This marks a sharp departure from the prior year’s Q1 loss of $31.7 million, highlighting the depth of the crypto market’s impact on the company’s financials.
Revenue Stagnation and Positive Cash Flow
Despite its mounting losses, Trump Media managed to generate $17.9 million in operating cash flow during the quarter, largely by selling options against its Bitcoin holdings. Total financial assets soared to $2.1 billion, tripling from a year earlier. However, revenue growth remained tepid, rising just 6% year-over-year to $871,200, with $810,100 attributed to media revenue and $61,100 from management fees tied to the company’s Truth.Fi ETF offerings.
The company has faced other challenges. CEO Devin Nunes stepped down on April 22, and the stock—once trading at $97.54 in early 2022—has plummeted, now sitting around $8.93. The broader market’s reaction to the firm’s performance has been harsh, reflecting skepticism about its ability to turn things around.
Trump-Linked Mining Venture Also Struggles
Meanwhile, American Bitcoin, a mining company co-founded by Eric Trump and backed by Donald Trump Jr., reported an $81.7 million net loss for Q1 2026. While narrower than the $100.6 million loss from a year prior, the firm fell short of expectations, posting a loss of 8 cents per share versus analysts’ 1-cent estimate. Revenue saw a significant year-over-year jump to $62.1 million but declined from $78.3 million in the prior quarter. The company mined a record 817 Bitcoin in Q1 2026, up from 783 BTC in Q4 2025, but that production wasn’t enough to offset operational losses.
Looking ahead, both Trump Media and its related ventures face significant challenges in justifying their crypto-heavy strategies. While Bitcoin’s recent price recovery offers a glimmer of hope, the volatile market and operational hurdles make a near-term turnaround far from certain.
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