Trump Media Reports $409.7M Profit As $1B Cash Repurchase Date Nears

Trump Media & Technology Group reported $409.7 million in third-quarter net income on about $3 million of revenue, while its quarterly filing warned of a possible cash repayment of approximately $1 billion later this month.

The company, which operates Truth Social, said in its 9th November results release that the bulk of profit reflected non-cash items. It reported $496.1 million of realised and unrealised gains on digital assets, pledged digital assets and equity securities, partly offset by derivative losses and other expenses.

Its own adjusted earnings before interest, tax, depreciation and amortisation measure showed a $12.3 million loss. The measure removes specified items from reported net income and does not follow generally accepted accounting principles. Revenue increased from about $1 million a year earlier, driven mainly by subscription growth from its Truth API data product and Truth+ streaming service.

Reported gains and available cash differ

The filing reports $378.1 million of realised and unrealised gains on digital assets and pledged digital assets in the quarter to 30th September. That narrower figure excludes the equity-security gains grouped into the larger total in the release.

The Financial Accounting Standards Board's crypto accounting standard requires qualifying holdings to be remeasured at fair value, with changes recognised in net income each reporting period. A rise in a holding's recorded value can therefore contribute to earnings without a sale generating cash. The standard also requires disclosures about contractual sale restrictions.

This distinction also appears in Strive's recent treasury results, which combined an unrealised digital-asset gain with dividend-bearing financing. For funds, BlackRock's quarterly reports similarly separate changes in asset values from money entering or leaving through share transactions.

Noteholders have a cash option this month

Holders of Trump Media's $1 billion of convertible senior secured notes can require the company to repurchase their notes for cash on 30th November at 100% of principal plus accrued and unpaid interest, subject to the indenture's terms. The debt is due in 2028, but that earlier holder option creates a nearer potential payment.

The filing says the company may lack sufficient cash or financing to satisfy repurchase obligations if holders exercise those rights. It discusses possible refinancing, asset monetisation and other measures. It does not say that holders have exercised the option or that the full amount will be demanded.

At 30th September, cash and cash equivalents were $182.3 million and short-term investments were $211.1 million. Those dated balances do not establish the cash available on the repurchase date. The company separately reported 4,260.73 Bitcoin (BTC) pledged as note collateral and 11,385.20 bitcoin pledged for its options strategy at quarter-end, with restrictions described in the filing.

The potential repurchase date comes before the shareholder meeting scheduled for 14th December on the proposed merger with TAE Technologies. The company says the merger still requires shareholder and regulatory approvals and other closing conditions.