Trump Media Bitcoin Collateral Hits $951M As Q3 Sales Stay Near $3M

Trump Media bitcoin collateral is the figure to read in the company's third-quarter 10-Q, filed on November 9. Net sales for the quarter were $2.97 million, against $972.9 thousand a year earlier. Net income was $409.7 million.

One line explains the gap. The company booked a $378.1 million gain on digital assets and digital assets pledged in the three months to September 30. A year earlier the same line was a $16.2 million loss. Over nine months it shows a gain of only $17.5 million, and the nine-month net result is a loss of $234.2 million.

The statement of operations in the 10-Q, with the digital asset gain line and net income. Source: SEC filing, Trump Media Form 10-Q.

Trump Media bitcoin collateral: 11,385 coins pledged

Note 4 splits the bitcoin in two. The balance sheet carries 4,263.94 bitcoin at a fair value of $356.3 million. A second line, digital assets pledged, carries $951.4 million, which the note ties to 11,385.20 bitcoin posted for an option strategy.

Add the two and the total is 15,649.14 bitcoin. By those units about 73% of the coins are in the pledged bucket.

The options section explains what pledged means here. The company says the bitcoin options are covered by collateral that it has rehypothecated to third parties. The digital asset note adds that the counterparty can rehypothecate the pledged bitcoin at its sole discretion. Premiums arrive in bitcoin and go to the company's digital asset manager to reinvest.

The options passage of the 10-Q, where the company describes rehypothecated collateral. Source: SEC filing, Trump Media Form 10-Q.

Calls and puts due in October

At September 30 the company had written covered calls on 4,838.40 bitcoin, with strikes from $68,000 to $92,000. It had written covered puts on 1,500 bitcoin, with strikes from $75,000 to $80,000. All of them matured in October 2026.

Written options carried a liability of $41.2 million at quarter end. Back in December it was just $7.5 million. By the time the 10-Q landed those contracts had already expired, so what you read is the September 30 book.

Convertible notes lock up the rest of the bitcoin

Most of the unpledged coins are tied up too, which adds to the Trump Media bitcoin collateral picture. The filing says 4,260.73 bitcoin, worth $356.1 million, back the company's convertible notes. The company cannot withdraw them, and the restriction lifts no later than the notes' maturity on May 29, 2028.

The filing's two collateral figures add to 15,645.93 bitcoin, within about three coins of the full holding. Convertible notes payable stand at $976.8 million and sit under current liabilities.

Cronos and the asset mix

Digital assets, pledged digital assets and equity securities make up about 68.3% of total assets. That share barely moved from 68.5% in December. Cronos is part of the pile too. The company holds 756,079,523 tokens, marked at $50.3 million against a cost of $113.9 million.

Anyone reading the quarter's profit should start with the notes.

A company with $2.97 million of quarterly sales and a bitcoin book this size moves with the bitcoin price. A counterparty may also reuse part of that book. Another listed holder, Strategy, took a different route this month. It aimed a stock sale at its preferred shares, as our report on the STRC buyback explains. This piece summarizes a filing and gives no trading advice.