Trump Media’s Bitcoin Strategy Faces Scrutiny After Major $165M Wallet Movement

Trump Media’s available bitcoin holdings may have effectively disappeared after wallets linked to the Truth Social parent company transferred another significant amount of BTC to Crypto.com, leaving behind a balance that closely matches its previously disclosed loan collateral.

The company’s upcoming second-quarter 10-Q filing is expected to clarify whether the latest Crypto.com transfers were routine custody movements or bitcoin sales.

According to Arkham data, wallets associated with Trump Media moved 2,628 BTC, valued at around $165 million, across two transactions on Saturday.

After the transfers, those tracked wallets held approximately 4,261 BTC, worth about $268 million with bitcoin trading near $63,000. Trump Media disclosed in its first-quarter filing that 4,260.73 BTC had been pledged as collateral for its convertible notes as of March 31. Those bitcoin holdings were restricted from distribution or withdrawal until the notes mature, no later than May 29, 2028.

The company has not confirmed that the remaining bitcoin balance represents the pledged collateral, and wallet tracking does not necessarily account for all of its holdings. However, the near-identical figures suggest that little to no discretionary bitcoin may remain.

Trump Media did not respond to requests for additional details about the transfers or its collateral position outside U.S. business hours on Monday.

The recent transaction follows a similar pattern observed earlier this year. In May, Trump Media-linked wallets transferred 2,650 BTC worth approximately $205 million to Crypto.com while bitcoin traded around $77,341. At that time, the company’s unrealized bitcoin losses were estimated at roughly $455 million. Another transfer in January moved 2,000 BTC valued at about $175 million when bitcoin was trading near $87,378.

Regardless of whether the latest movement was related to custody management or selling activity, Trump Media’s bitcoin holdings have continued to shrink since December.

The company initially purchased 11,542 BTC for about $1.37 billion at an average price of $118,522 per bitcoin, near the peak of the previous market cycle. Since then, wallets connected to Trump Media have moved 7,281 BTC out of their holdings.

Blockchain analytics firm Lookonchain identified the transactions as sales, estimating that the bitcoin was sold at an average price of $74,855 per coin. Based on that estimate, Trump Media may have already realized roughly $318 million in losses on sold bitcoin, while its remaining holdings carry an estimated unrealized loss of around $237 million.

The decline of Trump Media’s bitcoin treasury has outpaced the growth of its core business. In the first quarter, the company reported a net loss of $405.9 million on revenue of only $871,200. Around $368.7 million of that loss came from markdowns on digital assets and equity investments, including 756 million Cronos tokens acquired through its partnership with Crypto.com.

Crypto.com is one of Trump Media’s two disclosed custodians, alongside Anchorage Digital. A transfer to Crypto.com could indicate a standard custody arrangement, but because the platform also operates an exchange, it could also point to a sale. Blockchain records alone cannot distinguish between the two scenarios.

The company’s second-quarter 10-Q filing is expected to settle the question. If the bitcoin was sold, the transaction would be recorded as a realized loss on the income statement. If the move was only a custody transfer, it would not appear as a financial event. The filing will reveal how Trump Media accounted for its bitcoin movements since December.