Trump Media & Technology Group disclosed in its Q3 10-Q filing that it has pledged 11,385 BTC, representing approximately 73% of its total holdings, to a bitcoin yield management program. The counterparty in this arrangement has the right to rehypothecate the assets at their discretion.
As of September 30, the company held 15,649 BTC and 7 million shares of BlackRock’s IBIT. Beyond the yield program, 4,260 BTC serves as collateral for $1 billion in convertible notes. These notes allow holders to demand cash repayment starting November 30.
The company reported a net income of $409.7 million for the third quarter, largely attributed to unrealized gains on its digital assets. Despite this, the firm posted an adjusted EBITDA loss of $12.3 million and a nine-month loss of $234.2 million.
Management is currently evaluating options to address the upcoming note obligations, including a potential new credit facility. Executives stated a preference for using a mix of cash and credit to preserve their bitcoin holdings and maintain the current yield-generating strategy.
