Trump Media said it plans to revamp its digital asset treasury strategy after unrealized losses on crypto and securities helped drive a $238 million net loss in the second quarter. The company reported $190.4 million in unrealized losses across its digital assets, pledged digital assets and equity securities in its Q2 earnings release on Monday. According to Cointelegraph, Trump Media said the new framework is designed to preserve long-term digital asset exposure while reducing volatility and improving balance sheet productivity. The company, which operates Truth Social, Truth+ and the financial services brand Truth.Fi, is tied to U.S. President Donald Trump, who was the sole beneficiary of a trust holding about 41.1% of Trump Media’s voting power as of Feb. 25, according to its latest annual report. Its Q2 filing also said the company is already using options to manage Bitcoin volatility and generate premium income, while deploying some BTC through lending and other yield-generating arrangements. Trump Media added that it intends to shift more resources toward Truth Social, Truth+ and other parts of its media business as part of a broader change in capital allocation.

Trump Media’s Bitcoin holdings were little changed during the second quarter before the company increased its direct Bitcoin exposure in July. As of June 30, the company held 9,477.16 Bitcoin, down from 9,542.16 BTC at the end of the previous quarter. It also pledged 2,077.34 BTC as collateral for its options strategy, while 4,260.73 BTC from its reported holdings was serving as collateral for convertible notes. In July, Trump Media sold Bitcoin-related securities worth $159.6 million and used the proceeds to buy Bitcoin. By July 31, the company reported holding approximately 14,139 BTC, including pledged Bitcoin, worth about $890.5 million at the time. Trump Media also said its efforts to earn additional income from Bitcoin carry counterparty credit risk and the potential loss of assets. The company said it has deployed part of its Bitcoin holdings to third parties through lending, placement and other yield-generating arrangements, which it described as relatively new strategies. It warned that some counterparties may not be rated by major credit rating agencies and could default during market downturns, liquidity crises or other financial distress. If an arrangement is unsecured, the company said it may not recover its Bitcoin if a counterparty becomes insolvent. Trump Media also said it is limited in its ability to sell or pledge Bitcoin while it is deployed, while counterparties may use those assets at their discretion.