The Bitcoin Risk Inside Trump Media—And Why FTX Is Part Of The Warning

Aug 14, 2026 12:20 AM - 1 hour ago 1

Topline

Trump Media & Technology Group reported second-quarter results showing $238 cardinal successful losses, the mostly of which the Truth Social genitor attributed to integer assets, but a footnote successful a regulatory filing warned of perchance important losses ahead.

The Truth Social genitor warned its crypto assets could beryllium drained amid broader lending risks.

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Key Facts

Trump Media, successful a Securities and Exchange Commission filing connected Monday, disclosed a caller consequence facet absent from the firm’s anterior filing, informing the patient had deployed immoderate of its bitcoin holdings to 3rd parties to make further income, exposing the assets to lending risks that could consequence successful losses.

The filing warns the 3rd parties handling Trump Media’s bitcoin whitethorn not person established in installments ratings and could lend aliases promise the assets to different firms, pinch nary authorities security protecting Trump Media from losses if the counterparty fails aliases goes bankrupt.

Trump Media changed really it described income from trading bitcoin options, indicating it would now beryllium paid successful rate or, erstwhile a woody is completed, successful bitcoin, aft its first-quarter filing said those payments would beryllium “immediately paid successful cash.”

The second-quarter filing explicitly names FTX, Celsius, Voyager and BlockFi arsenic cautionary examples, informing if a 3rd statement holding its bitcoin goes bankrupt, Trump Media’s cryptocurrency could go portion of its bankruptcy property and the patient would beryllium near pinch “limited aliases nary recovery.”

The filing warns of “significant contagion risks” successful the crypto industry, wherever the nonaccomplishment of 1 patient could dispersed to others, and that Trump Media’s reliance connected a constricted number of 3rd parties to make income from its bitcoin increases its exposure.

big number

6,338.07. That’s really overmuch of Trump Media’s bitcoin—more than two-thirds of its astir 9,477 bitcoin—is tied up: 4,260.73 bitcoin are being utilized arsenic collateral backing $1 cardinal of debt, and 2,077.34 bitcoin are pledged arsenic portion of the firm’s bitcoin options strategy.

key background

Trump Media raised $1 cardinal successful convertible notes, a shape of indebtedness that tin beryllium converted into institution stock, arsenic portion of its strategy to build a bitcoin treasury. The strategy heightened Trump Media’s sensitivity to bitcoin value swings. The institution recorded astir $361 cardinal successful realized and unrealized integer plus losses done the first half of 2026. Shares of Trump Media stumbled to a two-week debased pursuing its net study this week, and the societal media level has reportedly faced a 36% diminution successful monthly visitors from a twelvemonth ago.

tangent

Two media organizations sued President Donald Trump connected Wednesday complete Truth Social’s scheme to waste faster entree to his societal media posts successful a programme called “Truth API.” The Intercept Media and nonprofit Freedom of the Press Foundation alleged the president “stands to summation financially” by giving authorities accusation to those who are “willing and capable to salary his individual company” successful a believe they called “extraordinary, corrupt and unconstitutional.” Trump Media CEO Kevin McGurn said during the firm’s net telephone that much than 10 companies had reached agreements for Truth API, “generally successful the scope of $60,000 to $100,000 a month.”