Trump Media & Technology Group disclosed in its third-quarter filing and earnings discussion that it acquired 4,359 bitcoin during the period. The purchases were funded in part by proceeds from a partial sale of shares in BlackRock’s iShares Bitcoin Trust. The company still retained seven million shares of the fund at quarter-end.

Chief Financial Officer Phillip Juhan stated that the total bitcoin position stood at approximately 15,649 coins on September 30. That figure represented a net increase of about 1,510 bitcoin from the prior disclosed level, valued at roughly $112 million based on the prices used in the report. The company also held more than 756 million Cronos tokens, assigned a value of about $50 million, with sale restrictions covering a large portion of that position.

Most Bitcoin Locked in Collateral Arrangements

Of the total bitcoin, 11,385.20 coins were pledged to the company’s bitcoin yield management program. That program involves selling and buying covered calls and puts settled in bitcoin, with the stated aim of generating yield and growing the principal balance. Premiums received in bitcoin are immediately rehypothecated to the digital asset manager for reinvestment. The filing notes that the counterparty may rehypothecate the coins at its sole discretion. Those pledged coins carried a fair value of $951.4 million at the end of September.

An additional 4,260.73 bitcoin, valued at $356.1 million on September 30, serves as collateral for $1 billion in zero-coupon senior secured convertible notes due in May 2028. Those coins cannot be withdrawn or distributed until the indenture conditions are satisfied. Combined, the two categories account for nearly the entire reported stack, leaving only a minimal free balance.

The yield program carried open positions at quarter-end that included written calls referencing 4,838.40 bitcoin at strikes ranging from $68,000 to $92,000 and puts on 1,500 bitcoin at strikes between $75,000 and $80,000, all set to expire in October. Risk disclosures state that counterparties may not be rated by credit agencies, that the company’s ability to sell or use the deployed bitcoin is limited while the arrangements remain open, and that recovery could prove difficult in the event of a counterparty insolvency if the positions are unsecured.

November 30 Noteholder Decision Looms

Holders of the $1 billion convertible notes have the right to require the company to repurchase them for cash at full principal on November 30. General Counsel Scott Glabe indicated that notices have been issued and responses are expected near the end of the month, so the precise cash requirement remains unknown. Cash and short-term investments totaled around $393 million at September 30, with more detailed figures citing $182 million in cash and $211 million in short-term investments. Gross financial assets, including bitcoin and related holdings, reached about $2.3 billion.

Interim CEO Kevin McGurn said the company intends to meet any repayment obligation with a combination of cash and credit rather than issuing new equity. The quarterly report cautions that refinancing may not be available on acceptable terms. The filing also notes that partners in the collateral arrangements may sell pledged bitcoin without notice if margin calls are missed.

Profit Driven by Digital Asset Gains Amid Price Decline

Third-quarter net income reached $409.7 million, reversing a loss from the year-earlier period. Gains on digital assets and pledged digital assets contributed $378.1 million as bitcoin rose from roughly $59,000 at the end of June to about $84,000 on September 30. Adjusted EBITDA remained negative at $12.3 million, and the company recorded a nine-month loss of $234.2 million. Quarterly revenue was approximately $3 million.

Bitcoin has since declined. Prices near $73,000 to $74,000 in early November left the holdings valued lower than at quarter-end, producing unrealized losses relative to the September 30 marks. One assessment placed the paper loss in the range of several hundred million dollars. Bitcoin traded near multi-week lows, below both its 50-day and 200-day moving averages, with recent weekly and monthly returns negative.

The disclosure of the third-quarter purchases came days after President Donald Trump described digital currencies as “a little bit dangerous,” commenting that people no longer see the money as they once did when signing checks. The company has not publicly addressed any connection between that statement and its treasury activity. Shareholders are scheduled to vote on December 14 on a planned merger with fusion energy firm TAE Technologies, which management expects to close by year-end.