Bitcoin News Today: Trump Media Q2 Net Loss Drives 4 Stock Decline Amid Legal Costs And Etf Delays

Trump Media & Technology Group (DJT) reported a $20 million net loss for the second quarter of 2025, triggering a nearly 4% decline in its stock price on August 2 as investors reacted to the disappointing earnings [1]. The financial setback was largely attributed to ongoing legal expenses related to the company’s delayed SPAC merger, which has now stretched to 29 months. Approximately $15 million of the loss stemmed from litigation with its SPAC sponsor and two co-founders of Truth Social, whom the company accused of improper conduct that prolonged the merger process [2].

Despite the losses, Trump Media disclosed a significant expansion of its Bitcoin holdings, reaching $2 billion in the second quarter, with total company assets now at $3.1 billion [2]. The company, which is majority-owned by Donald Trump, now ranks among the top five public entities holding Bitcoin. About two-thirds of its $3 billion in liquid assets are tied to Bitcoin, with an additional $300 million allocated to options linked to bitcoin-related equities [3]. The firm has the flexibility to convert those positions into spot Bitcoin based on market conditions.

Alongside the earnings report, the company outlined plans for a new rewards program tied to a utility token. Subscribers to its Patriot Package, currently in beta, will accumulate “gems” that may eventually be used across its media platforms, including Truth+ streaming service. While the token will initially cover subscription costs for Truth+, broader applications are expected in the future. However, the company did not confirm whether the token will be blockchain-based [1]. Trump Media also reiterated its efforts to launch digital asset ETFs, though the SEC has delayed a decision until at least September 18 [3].

The company has been cautious in detailing how much of its $2 billion in Bitcoin holdings consists of direct ownership versus exposure through ETFs or equities [3]. It also left open the possibility of further Bitcoin acquisitions or related investments. Earlier this year, Trump Media announced plans to raise $2.5 billion to fund Bitcoin purchases, a strategy reminiscent of companies like MicroStrategy and Semler Scientific that have adopted Bitcoin as a core reserve asset.

While the firm has reported rising sales and positive operating cash flow, the market has been skeptical about its long-term profitability. Analysts have noted that despite ambitious moves into cryptocurrency and digital innovation, the company’s ability to generate sustainable earnings remains uncertain. The stock has remained sensitive to quarterly results and political developments linked to Donald Trump [4]. The recent decline also mirrored broader volatility in the media and tech sectors, as macroeconomic concerns and slowing hiring data weighed on investor sentiment [5].

The situation highlights the broader challenges facing media and tech firms navigating digital transformation, regulatory uncertainty, and economic headwinds. Trump Media’s ability to monetize its Bitcoin holdings and digital initiatives will be key to restoring investor confidence. As it moves forward with its digital wallet and token projects, the market will be watching for signs that these strategies can reverse the recent financial trends [5].

Source:

[1] https://www.ainvest.com/news/bitcoin-news-today-trump-media-q2-net-loss-drives-4-stock-decline-legal-costs-etf-delay-2508/

[2] https://cryptodnes.bg/en/trump-media-shares-dip-after-20m-q2-loss-despite-expanding-bitcoin-reserves/

[3] https://cryptorank.io/news/feed/6f44d-trump-media-q2-earnings-loss-new-utility-token-announcement

[4] https://coincentral.com/bitcoin-btc-price-eric-trump-calls-buy-the-dip-as-bitcoin-bounces-from-key-support/

[5] https://tvnewscheck.com/articles/