Trump Media bets on Bitcoin recovery as it readies note repayments

Trump Media is seeking to preserve its Bitcoin holdings as it prepares to repay outstanding convertible notes, with plans to use cash and credit rather than issue additional shares.

Interim CEO Kevin McGurn said on the company’s third-quarter earnings call that Trump Media currently has $2.3 billion in assets and wants to preserve its Bitcoin to maintain its yield-generating program and leave room for a recovery in the asset’s value.

“We want to preserve as much of our Bitcoin as possible to continue our yielding strategy and allow that asset to recover,” McGurn said.

The parent company of Truth Social held about 15,650 BTC and 7 million IBIT shares at the end of September, with roughly 11,385 BTC pledged to its Bitcoin Yield Management Program.

The company started transferring its digital asset holdings into the program in July, using proceeds from a partial sale of IBIT shares to buy 4,359 BTC in the third quarter. CFO Phillip Juhan said the transition supports a more diversified, third-party institutional approach to managing the company’s digital asset treasury.

Trump Media reported a $378 million gain on digital assets in the quarter, largely reflecting Bitcoin’s 42% price increase to roughly $84,000 at the end of September from about $59,000 three months earlier.

The company also recorded a $60 million investment gain, primarily from realized and unrealized gains on Bitcoin-related securities, an improvement of more than 180% from its second-quarter investment loss.

Asked about Trump Media’s main priorities before completing its planned merger with TAE Technologies, McGurn said closing the deal remains the company’s top objective.

McGurn also said the company is working to address its bond obligations while limiting shareholder dilution.

“We’ve come up with a strategy and are working towards the mix that we’ll put into market to satisfy that requirement. We want to maintain as much Bitcoin as possible to continue to run our yielding program,” he reiterated, adding that the company will continue running its media business throughout the merger process and after the deal closes.