web3: Trump Media Discloses Bitcoin Holding and Lending Risks

CoinWorld reported:

Trump Media has added a previously unmentioned risk warning in its latest filing with the U.S. Securities and Exchange Commission (SEC). The company disclosed that it has entrusted a portion of its Bitcoin to third parties for additional income, exposing the related assets to lending and counterparty default risks.

More than two-thirds of Bitcoin is already utilized

The filing shows that Trump Media currently holds approximately 9,477 Bitcoins, of which 6,338.07 Bitcoins are bound in various arrangements, accounting for more than two-thirds of the total holdings.

• 4,260.73 Bitcoins are used as collateral for a $1 billion debt.
• 2,077.34 Bitcoins are pledged in the company's Bitcoin options strategy.

This means that the amount of Bitcoin the company can freely allocate is less than the total holdings on the books. As more assets are used for collateral, pledging, or yield arrangements, the company's sensitivity to Bitcoin price fluctuations and counterparty stability also increases.

The filing names bankruptcy cases like 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 may continue to lend or re-pledge the related assets to other institutions. If a counterparty defaults or enters bankruptcy proceedings, the company may face losses, and there is no government insurance to provide protection.

The filing also explicitly mentions FTX, Celsius, Voyager, and BlockFi as warning cases of risk spillover in the crypto industry. Trump Media stated that if a third party holding its Bitcoins goes bankrupt, these crypto assets could be included in the bankruptcy estate, and the amount the company ultimately recovers may be minimal or even none.

Adjustments in options income description

The filing also adjusted the company's description of Bitcoin options income. Compared to the first quarter filing's statement of "immediate cash payment," the second quarter filing changed to indicate that the company will receive the related income in cash or in Bitcoin upon completion of the transaction.

This change indicates an adjustment in the settlement method for the company's Bitcoin yield arrangements, suggesting that some income may not be directly converted to cash but could remain within the crypto asset exposure.

Digital asset losses of approximately $361 million in the first half of the year

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 Bitcoin allocations expand, the company's performance reacts more directly to price fluctuations. The filing shows that in the first half of 2026, the company has recognized and unrecognized digital asset losses totaling nearly $361 million. Following the financial report release, Trump Media's stock price briefly fell to a two-week low.

Additional Information: The report also mentioned that the parent company of Truth Social has recently been sued by two media organizations over the "Truth API" project, but this dispute is not the core content of the Bitcoin risk disclosure.

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