Reporting · markets
Trump Media reports $409.7 million Q3 profit on crypto gains
Trump Media swung to a third-quarter profit of $409.7 million, driven by gains on crypto and equity holdings, while its core business still ran at a loss.
Quick take
- Trump Media swung to a $409.7 million third-quarter profit from a prior-quarter loss.
- Gains on crypto and equity holdings drove the result, while the core business still lost money.
- Holders of $976.8 million in convertible notes can demand repayment on November 30.
BeInCrypto reported that Trump Media moved from a $238.1 million loss in the second quarter to a $409.7 million profit in the third. Net gains on digital and equity assets reached $496.1 million, and digital assets accounted for $378.1 million of that total.
Gains on crypto and equity holdings drove the profit, while the core business still operated at a loss. Adjusted EBITDA was a loss of $12.3 million, although revenue climbed 205% to $3.0 million. Interim CEO Kevin McGurn cited business fundamentals when discussing the results.
The company holds 4,264 BTC and has pledged 11,385 BTC for options. Its second-quarter unrealized losses on holdings reached $190.4 million, and it held about $393 million in cash at September 30. Holders of the $976.8 million in convertible notes can demand repayment on November 30.
Separately, wallets were reportedly used to move 4,259 BTC to Crypto.com last week. Together, the cash balance and the November 30 repayment date frame the company's near-term obligations.
Sources
Machine-written from the publishers’ reports and checked against them · How Dextape writes