Trump Media and Technology Group (DJT) is under pressure after suffering a massive financial deficit from a stumbling Bitcoin bet. The business moved another 2,650 Bitcoin (BTC-USD) worth about $205 million to Crypto.com. This big transfer is creating a lot of questions about the crypto plans.
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The company now faces an estimated $455 million loss on its total crypto holdings because it bought tokens at a much higher price. The firm also reported a massive first-quarter net loss of $405.9 million. This huge deficit happened on less than one million dollars of total revenue.
Huge Cryptocurrency Losses Hurt DJT’s Budget
The business purchased a massive pile of 11,542 Bitcoin in the past. They paid an average price of $118,522 for each individual coin. Bitcoin prices have dropped heavily since that purchase. The digital token now trades at roughly $77,341 per coin. This price drop created a massive hole in the corporate balance sheet.
Blockchain data tracked the newest transfer late in the evening. The firm sent those 2,650 Bitcoin straight to Crypto.com. This is not the first time the business moved its tokens. They also moved 2,000 Bitcoin out of their main wallets four months ago.
Trump Media’s Dropping Revenue Numbers Increase the Financial Pressure
Trump Media faces extra stress beyond its falling crypto tokens. The company recently cancelled its application for a spot Bitcoin ETF. Experts believe the firm dropped the plans because the crypto fund market is too crowded now.
Trump Media’s earnings report showed terrible financial health. The firm lost $405.9 million in the first three months of the year. Their total revenue for that same time was just $871,200. The net loss is much bigger than the $31.7 million loss from last year. This small amount of sales cannot cover the rising costs of their bad crypto strategy.
At the time of writing, Bitcoin’s price is sitting at $76,738.
