In its latest filing with the U.S. Securities and Exchange Commission (SEC), Trump Media has added a previously undisclosed risk factor. The company disclosed that it has entrusted a portion of its Bitcoin to a third party to generate additional income, exposing these assets to lending and counterparty default risks.
More than two-thirds of Bitcoin has been locked up.
The document shows that Trump Media currently holds approximately 9,477 bitcoins, of which 6,338.07 have been pledged under various arrangements, accounting for more than two-thirds of the total holdings.
- 4,260.73 bitcoins were used as collateral for $1 billion in debt.
- 2,077.34 BTC have been pledged in the company's Bitcoin options strategy.
This means the amount of Bitcoin the company can freely allocate is less than its total recorded holdings. As more assets are used for collateral, staking, or yield arrangements, the company becomes more sensitive to Bitcoin price fluctuations and counterparty stability.
The document cites bankruptcy cases such as FTX.
The company disclosed that the third parties responsible for custodianship or operation of these bitcoins may not have a mature credit rating system and could continue to lend or re-pledge the related assets to other institutions. If a counterparty defaults or enters bankruptcy proceedings, the company could face losses, with no government insurance coverage available.
The document also explicitly mentions FTX, Celsius, Voyager, and BlockFi as cautionary examples of risk spillover in the crypto industry. Trump Media states that if a third party holding its Bitcoin becomes insolvent, these crypto assets could be included in the bankruptcy estate, potentially resulting in the company recovering little or no funds.
The presentation of options income has been adjusted.
The filing also revised the company’s description of its Bitcoin options revenue. Compared to the first-quarter filing, which stated that revenue would be received “immediately in cash,” the second-quarter filing now states that the company will receive the related revenue in cash or in Bitcoin upon completion of the transaction.
This change indicates an adjustment in the company’s settlement approach for Bitcoin income arrangements, meaning that some earnings may not be directly converted to cash but could remain within exposure to crypto assets.
In the first half of the year, digital asset losses amounted to approximately $361 million.
Trump Media previously raised $1 billion through convertible notes to advance its Bitcoin treasury strategy. Convertible notes are debt instruments that can be converted into company stock under certain conditions.
As the company's Bitcoin holdings increased, its financial performance became more directly sensitive to price fluctuations. Documents show that, in the first half of 2026, the company's recognized and unrecognized digital asset losses totaled nearly $361 million. Following the earnings release, Trump Media's stock price fell to a two-week low.
Additional information: The report also mentioned that Truth Social’s parent company recently faced lawsuits from two media organizations over the “Truth API” project, but this dispute is not central to the disclosure of Bitcoin risks.