Trump Media bitcoin balance mirrors pledged collateral

Trump Media & Technology Group’s publicly tracked bitcoin holdings have fallen to almost the exact amount it previously disclosed as collateral for convertible notes, intensifying scrutiny over whether a $165 million transfer to Crypto. com was a custody adjustment or a disposal.

Wallets linked to the Truth Social parent moved about 2,628 bitcoin to Crypto. com in two transactions during the weekend. The tokens were valued at roughly $165 million at the time, based on bitcoin trading near $63,000.

The transfers left approximately 4,261 bitcoin in wallets publicly associated with the company. That balance closely matches the 4,260.73 bitcoin Trump Media reported as collateral for its convertible notes at the end of March.

Trump Media said the transferred bitcoin had not been sold. The company did not publicly explain the precise commercial purpose of the transactions, leaving investors dependent on its next quarterly filing for a detailed reconciliation of its cryptocurrency assets, pledged holdings and custody arrangements.

A transfer to an exchange-linked wallet does not by itself establish a sale. Companies can move digital assets between custodians, segregated accounts, collateral wallets and trading venues without changing ownership. Crypto. com is also one of the custodians involved in Trump Media’s digital-asset strategy.

The remaining balance nevertheless gives the movement added significance. Trump Media disclosed that the 4,260.73 bitcoin pledged against its convertible notes could not be distributed or withdrawn unless specified indenture requirements were met. Those restrictions are scheduled to remain in place until no later than the notes’ maturity on May 29, 2028.

The near-perfect match between that pledged amount and the balance left in tracked wallets raises the possibility that much of the company’s freely deployable bitcoin has been moved elsewhere. Public blockchain records cannot show whether the transferred tokens were retained in company-controlled accounts, posted under another agreement, exchanged for cash or used in a wider trading strategy.

The company’s second-quarter Form 10-Q is therefore expected to provide the clearest test. It should show the number of bitcoin owned at June 30, their classification on the balance sheet and any restrictions attached to them. Transfers completed after the quarter’s end may also require disclosure if management considers them material.

Trump Media entered the bitcoin market through a financing package announced in May 2025. It raised about $2.5 billion through the sale of shares and $1 billion of zero-coupon convertible senior secured notes, placing cryptocurrency at the centre of its effort to expand beyond Truth Social and its Truth+ streaming service.

The company later disclosed holdings of 11,542 bitcoin, accumulated at an average cost estimated at around $118,500 per token. The decline in bitcoin prices since those purchases has generated substantial unrealised losses and increased the sensitivity of Trump Media’s financial results to cryptocurrency market movements.

Its first-quarter filing recorded nearly $244 million in unrealised losses on digital assets and pledged digital assets. The company reported an overall quarterly net loss of about $406 million, compared with roughly $32 million a year earlier, while revenue remained below $1 million.

Trump Media also held covered-call options linked to 4,000 bitcoin during the first quarter. That arrangement required it to maintain 2,000 bitcoin as collateral with a counterparty that could rehypothecate the assets. The options were due to expire in June, making the second-quarter accounts important for establishing whether those bitcoin returned to unrestricted custody or were redeployed.

The weekend transfer follows an earlier movement of about 2,650 bitcoin to Crypto. com in May, then valued at approximately $205 million. Trump Media also said that transaction was not a sale and described it as part of a broader strategy. Publicly tagged balances have fallen sharply across the series of movements, although blockchain tracking may not capture every wallet or custodial account controlled by the company.

The distinction between transfers and sales is critical because a sale would crystallise losses, alter liquidity and potentially affect the collateral supporting the notes. A custody transfer would have a more limited accounting impact but could still reveal changes in risk management, hedging or counterparty exposure.

Trump Media’s cryptocurrency programme extends beyond bitcoin. The company has pursued investment products under its Truth. Fi brand and has developed partnerships involving Crypto. com’s CRO token, digital wallets and proposed exchange-traded funds.