Trump Media & Technology Group, the owner of Truth Social, swung to third-quarter net income of $409.7 million, the company said on Monday, but almost all of it came from the rising value of its bitcoin rather than from its media business. The bigger test is three weeks away. Holders of the company’s $1 billion in convertible notes can demand their money back in cash on Nov. 30, and the quarterly report filed with the SEC warns that selling bitcoin is one of the ways it could pay.
A profit built on bitcoin’s third-quarter rally
The company reported net income of $409.7 million for the three months to Sept. 30, against a net loss of $54.8 million a year earlier, according to its earnings release. Realized and unrealized gains on digital assets, pledged digital assets and equity securities added $496.1 million. The release’s reconciliation table puts the gain on digital assets and pledged digital assets at $378.1 million, plus $60.0 million of investment income that the company tied mainly to bitcoin-related securities.
Strip those out and the picture changes. Adjusted EBITDA was a loss of $12.3 million. Revenue rose 205% to $3.0 million, helped by $1.8 million of subscription growth from Truth API, a data-licensing product launched on Aug. 1, and Truth+. Legal fees dropped to $2.4 million from $20.3 million a year earlier after the company resolved its remaining SPAC-era legal matters. For the first nine months of 2026 it still shows a net loss of $234.2 million, and it used $28.4 million of cash in operations.
15,649 BTC, most of it working for a counterparty
Chief financial officer Phillip Juhan said on the earnings call that the company held about 15,649 bitcoin at the end of September, roughly 11,385 of them pledged to its bitcoin yield program, The Block reported. The filing gives the detail. Trump Media pledged 11,385.20 BTC for an options strategy that requires it to post bitcoin collateral the counterparty “can rehypothecate at their sole discretion.” At quarter-end it had written covered calls on 4,838.40 BTC with strikes between $68,000 and $92,000, all expiring in October.
Another 4,260.73 BTC, worth $356.1 million on Sept. 30, sits as collateral for the convertible notes and is restricted until collateral-ratio tests are met, or at the latest until the notes mature in May 2028. At about $74,600 on Coinbase early on Tuesday, the 15,649 BTC are worth roughly $1.17 billion.
The company also confirmed it has dropped the digital token it promised shareholders last year. The 10-Q says Trump Media decided to “discontinue such planned token distribution,” citing difficulty getting information from shareholders who hold through brokers and object to sharing their details. It plans to offer discounts and promotions to holders as of the Feb. 2 record date instead. It is the second token idea the company has shelved this year, after it walked away from a planned $6.4 billion CRO treasury vehicle with Crypto.com in August.
The $1 billion question on Nov. 30
The notes were issued in May 2025 to fund the bitcoin purchases: $1.0 billion of 0% convertible senior secured notes due 2028. Each holder has the right to require Trump Media to buy back its notes for cash at full principal on Nov. 30, 2026. The conversion rate of 28.8 shares per $1,000 implies a conversion price of about $34.72 a share, far above the $4.06 Monday close The Block reported, so holders have little reason to convert rather than take cash.
The balance sheet shows why the date matters. On Sept. 30 Trump Media had $182.3 million in cash and $211.1 million in short-term investments, about $393 million combined, against notes carried at $976.8 million. The rest of its $2.3 billion in financial assets is mostly bitcoin and bitcoin-related securities.
The 10-Q is blunt about the risk. If holders use the put, the company “could be required to pay up to approximately $1.0 billion in cash,” and if it cannot refinance it may need to “sell our bitcoin or other digital asset holdings to fund such repurchases.” Management struck a different tone on the call. Interim CEO Kevin McGurn said the plan is a mix of cash and credit and that the company wants to keep as much bitcoin as possible, according to a transcript published by Investing.com. General counsel Scott Glabe said noteholders have until near the end of the month to say whether they want repayment, so the company could not yet estimate the amount.
What to watch next
The first marker is Nov. 30 and any credit facility announced before it. A loan secured on bitcoin would keep the coins on the books but add leverage; a sale would put Trump Media alongside MARA, which sold 13,597 BTC after the quarter to repay its bitcoin-backed loans. The second is Dec. 14, when shareholders vote on the merger with fusion developer TAE Technologies. The company’s S-4 was declared effective on Nov. 5, and it expects to close in the fourth quarter. Juhan said on the call that the combined company would have roughly 600 million shares on a fully diluted basis, about double today’s count.
FAQ
Why did Trump Media report a $409.7 million profit?
Mainly because bitcoin rose about 42% during the quarter. Non-cash gains on digital assets and securities totaled $496.1 million, while adjusted EBITDA was a $12.3 million loss.
How much bitcoin does Trump Media hold?
About 15,649 BTC at Sept. 30, according to the CFO. The 10-Q shows 11,385.20 BTC pledged for an options strategy and 4,260.73 BTC held as collateral for its convertible notes.
What happens on Nov. 30?
Holders of the $1.0 billion in convertible notes can require Trump Media to repurchase them for cash. The company says it plans to use cash and credit, but its filing lists bitcoin sales as a possible way to pay if refinancing falls short.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
