Trump Media abandoned its bitcoin treasury after a $190 million paper loss, with Rumble gaining 4% as investors rotated to crypto-free alt-media. MSTR sits on a $10 billion bitcoin paper loss and faces forced-selling risk as the corporate crypto treasury model loses credibility. The most widely read finance newsletter on Substack isn't published by a bank, it's Doomberg, where 383,000+ readers get the energy and macro analysis the mainstream press misses. 24/7 Wall St. readers save 17% on their first year here.
Trump Media & Technology Group (NASDAQ:DJT) stock is down 4% to $7.96 in late-morning trading Monday after the company signaled a retreat from the bitcoin treasury strategy it embraced last year. The move extends a bruising stretch for the stock. Trump Media shares are down 38% year to date (YTD).
Over the trailing year, Trump Media stock is down 53%, well below its 52-week high of $18.97. The catalyst is a strategic pivot back to media and advertising after nearly $200 million in crypto losses, including a reported $190 million paper loss on its holdings. Trump Media built the position as bitcoin was peaking.
Bitcoin (CRYPTO:BTC) has been sliding for more than 10 months, quoted at $63,000 against an all-time high of $126,000. The token is down 46.61% over the past year and down 28.32% YTD, a backdrop that turned Trump Media's balance sheet bet into a growing drag on earnings. Interim CEO Kevin McGurn stated the company has "refined" its approach to capital allocation, redirecting resources toward Truth Social, Truth+, and the Truth API data feed.
Trump Media has also agreed to acquire TAE Technologies, a private nuclear fusion energy firm, in a deal it aims to close by year-end. Trump Media posted a second-quarter net loss of $238 million, driven almost entirely by paper losses on its crypto holdings. Trailing 12-month revenue is $4.5 million against a trailing net loss of $1.3 billion, while market capitalization was about $2.3 billion as of the August 12 close.
Before Doomberg published a word, its team spent long careers in heavy industry, private equity, and the hard sciences. They take no advertisers and serve no institution — which is why their lateral-thinking coverage of energy, finance, and geopolitics reads nothing like consensus financial media. Doomberg has set aside a discounted rate exclusively for 24/7 Wall St. readers — it isn't available on their main page.
Extract — continue reading at the source.
