Trump Media & Technology Group announced plans to overhaul its digital asset treasury strategy after unrealized losses on cryptocurrencies and securities contributed to a $238 million net loss for the second quarter.

According to its Q2 earnings release on Monday, the company reported $190.4 million in unrealized losses across its digital assets, pledged digital assets, and equity securities. These were paper losses under mark-to-market accounting rules, meaning they reflected declines in the value of holdings Trump Media continues to own rather than assets sold at a loss.

The company stated that the new framework is designed to preserve its long-term digital asset exposure while managing volatility and enhancing balance sheet productivity. The overhaul places Trump Media among a small group of publicly traded companies pursuing aggressive Bitcoin treasury strategies, a model popularized by MicroStrategy and later adopted by firms including Semler Scientific and Metaplanet.

Trump Media is the publicly traded parent company of Truth Social, Truth+, and the financial services brand Truth.Fi. US President Donald Trump is the sole beneficiary of a trust that held approximately 41.1% of Trump Media's voting power as of February 25, according to its latest annual report.

The company's Q2 filing reveals that Trump Media is already employing options to manage Bitcoin price volatility and generate premium income, while also deploying a portion of its BTC holdings through lending and other yield-generating arrangements. Additionally, the company plans to allocate more resources toward Truth Social, Truth+, and other segments of its media business as part of a broader capital allocation shift.

Trump Media Expands Bitcoin Holdings After Q2

Trump Media's Bitcoin holdings remained largely stable during the second quarter before the company increased its direct Bitcoin exposure in July.

As of June 30, the company held 9,477.16 Bitcoin, a slight decrease from 9,542.16 BTC at the close of the previous quarter. Separately, the company had pledged 2,077.34 BTC as collateral for its options strategy. Of its total reported holdings, 4,260.73 BTC was serving as collateral for convertible notes, according to a subsequent filing.

In July, Trump Media sold Bitcoin-related securities valued at $159.6 million and used the proceeds to purchase additional Bitcoin. By July 31, the company reported holding approximately 14,139 BTC, including pledged Bitcoin, with a total value of roughly $890.5 million at that time.

Risks Flagged in Bitcoin Yield Strategy

Trump Media cautioned that its efforts to generate additional income from its Bitcoin holdings carry counterparty credit risk and the potential for asset loss.

The company disclosed that it has deployed a portion of its Bitcoin to third parties through lending, placement, and other yield-generating arrangements, which it described as relatively new strategies. Some of these counterparties may not be rated by major credit rating agencies and could face default during market downturns, liquidity crises, or other periods of financial distress.

If an arrangement is unsecured, the company warned it may be unable to recover its Bitcoin in the event of counterparty insolvency. Trump Media also noted that its ability to sell or pledge Bitcoin is restricted while the assets are deployed, while counterparties may use those assets at their discretion. Such risks have materialized across the crypto industry in recent years, with high-profile collapses of lending platforms including Celsius Network, BlockFi, and Genesis Global Capital resulting in significant customer losses.