- Trump Media earned $409.7 million in Q3, largely from non-cash crypto and equity gains.
- Revenue rose 205% to $3 million, while adjusted EBITDA remained negative at $12.3 million.
- Noteholders can request cash repayment November 30 on notes carrying roughly $1 billion in principal.
Trump Media reported a $409.7 million third-quarter profit, reversing a $54.8 million loss a year earlier. Gains on cryptocurrency holdings and equity securities drove the turnaround, according to results released November 9. DJT stock closed at $4.06, up 1.75%, before the announcement. The Truth Social parent nevertheless recorded another loss on an adjusted operating basis.
Trump Media Crypto Gains Overshadow Growth in Media Revenue
Trump Media booked $496.1 million in combined gains on digital assets, pledged holdings and equity securities. Digital assets, including pledged Bitcoin, contributed $378.1 million, the quarterly filing shows.
The company held roughly 15,649 BTC at September 30, including 11,385 BTC pledged to its options strategy. Reported earnings reflect market valuations, allowing asset price changes to outweigh revenue from its media products. Most Bitcoin outside the options program also supported the convertible notes, restricting the availability of those assets.
Trump Media revenue climbed 205% to $3 million, supported by Truth API and Truth+ subscriptions. Its adjusted EBITDA, which excludes several non-cash items, remained negative at $12.3 million. Across nine months, the company still recorded a $234.2 million net loss.
Truth API sells institutional clients faster access to public Truth Social posts. The data licensing product launched in August, adding a subscription revenue stream alongside the existing Truth+ streaming service.
Convertible Notes Bring November Cash Repurchase Pressure
Trump Media listed convertible notes at a $976.8 million carrying value among current liabilities. Principal totals approximately $1 billion, and holders can request cash repurchase on November 30. The notes otherwise mature in May 2028.
Cash, cash equivalents and short-term investments totaled about $393 million at quarter-end. Any repayment requirement depends on investor elections. A large non-cash profit therefore offers limited evidence of funds available for debt repayment.
The filing identifies Bitcoin, related securities and restricted cash as collateral for the notes. Management said it could pursue refinancing or sell assets if holders exercise their rights.
Trump Media also expects its proposed TAE Technologies merger to close during the fourth quarter, subject to approvals. The SEC declared the registration statement effective November 5, and shareholders are scheduled to vote December 14.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
