Trump Media & Technology Group, the parent company of Truth Social, reported a net loss of $405.9 million for the first quarter of 2026, a dramatic increase from the $31.7 million loss a year earlier. The steep decline is largely attributed to unrealized losses on its cryptocurrency holdings.
The company recorded $244 million in unrealized losses on its Bitcoin position and an additional $108.2 million in investment losses linked to equity securities. Nearly $370 million of the total quarterly losses stemmed from digital asset and equity markdowns, according to a recent SEC filing.
These losses trace back to Bitcoin purchases made near the market peak last summer. Trump Media bought approximately 9,500 Bitcoin at an average cost of $108,519 per coin. By March 31, the company held 9,542 Bitcoin valued at $647 million against a cost basis of $1.13 billion-a gap of nearly $500 million. That position has since partially recovered, now worth around $770 million with Bitcoin trading above $80,000.
The company also holds 756 million Cronos tokens, purchased for $113.9 million as part of a deal with Crypto.com, but worth just $53 million at quarter-end. Of the firm's Bitcoin holdings, 4,260 BTC is pledged as collateral for convertible notes, and another 2,000 BTC is held against covered call options to hedge against price swings.
Despite the losses, Trump Media generated $17.9 million in operating cash flow during the quarter, aided by selling options tied to its pledged Bitcoin. Total financial assets reached $2.1 billion, triple the level from a year ago. Revenue came in at $871,200, up just 6% from $821,200 in Q1 2025, with media revenue of $810,100 plus $61,100 in management fees from Truth.Fi ETF offerings.
This comes during a turbulent period. CEO Devin Nunes stepped down on April 22, and the stock has lost over 90% of its value since peaking at $97.54 in early 2022, now trading around $8.93.
Separately, American Bitcoin, the crypto mining company co-founded by Eric Trump and backed by Donald Trump Jr., posted an $81.7 million net loss in Q1 2026, narrowing from a $100.6 million loss a year earlier. Revenue jumped 400% to $62.1 million but missed analyst estimates by 17%. The company mined a record 817 Bitcoin during the quarter.