Trump Media said it is overhauling how it manages its digital-asset portfolio after unrealized losses on cryptocurrencies and securities pushed the company to a $238 million net loss in the second quarter. In its Q2 update released Monday, the business behind Truth Social and financial services brand Truth.Fi said it plans a “revamp” of its treasury approach aimed at keeping long-term crypto exposure while better controlling balance-sheet volatility.

The company attributed $190.4 million in unrealized losses across digital assets, pledged digital assets and equity securities. It also framed the changes as a way to improve the “productivity” of its balance sheet—an emphasis that suggests it intends to continue earning yield and structuring risk around Bitcoin, rather than simply holding spot exposure indefinitely.

Key takeaways

• Trump Media reported $190.4 million in unrealized losses tied to its digital assets, pledged holdings and equity securities during Q2.
• The company plans a new treasury framework to preserve long-term digital-asset exposure while managing volatility and improving balance-sheet efficiency.
• Trump Media’s Q2 filing indicates it already used options to manage Bitcoin volatility and to generate premium income, alongside deploying some BTC into yield arrangements.
• In July, Trump Media increased its Bitcoin exposure after selling Bitcoin-related securities worth $159.6 million and buying BTC with the proceeds.
• Trump Media warned that its Bitcoin yield/carry strategies introduce counterparty credit risk, including potential inability to recover Bitcoin if a counterparty becomes insolvent.

A larger rethink after a heavy Q2 loss

Trump Media said the portfolio losses were a key driver of its Q2 results, which ended in a $238 million net loss. Alongside the headline loss, the company disclosed a specific figure for unrealized drawdowns: $190.4 million spanning digital assets, pledged digital assets and equity securities.

Management’s stated intent for the “revamp” is not to eliminate crypto exposure, but to keep it while refining how the company absorbs and mitigates volatility. That framing matters for investors because it signals an ongoing commitment to crypto-linked strategies—particularly ones that may involve derivatives or lending structures—rather than a full shift toward holding only unencumbered assets.

Trump Media’s broader business context also provides a clue about the internal priorities behind the treasury shift. The company said it plans to direct more resources toward Truth Social, Truth+, and other media segments as part of a capital-allocation change.

Where the Bitcoin stood: little movement in Q2, a jump in July

According to the company’s Q2 reporting, its Bitcoin exposure was relatively stable throughout the second quarter. As of June 30, Trump Media held 9,477.16 BTC, down slightly from 9,542.16 BTC at the end of the prior quarter.

What complicates the picture is that the company also uses Bitcoin in collateral and structured strategies. In addition to its direct holdings, it pledged 2,077.34 BTC as collateral for its options approach. The filing also indicated that 4,260.73 BTC of reported holdings were posted as collateral for convertible notes.

The direction changed in July. Trump Media said it sold Bitcoin-related securities worth $159.6 million and used the proceeds to purchase Bitcoin. By July 31, the company reported holding approximately 14,139 BTC, including pledged Bitcoin, valued at about $890.5 million at the time.

For readers tracking crypto treasury behavior, the sequence is important: Q2 shows modest net spot movement, while July reflects a more decisive increase in aggregate BTC exposure—likely a response to how the company wanted to position itself after the earlier quarter’s unrealized losses.

Options and yield: how Trump Media says it manages volatility

In its Q2 filing, Trump Media described an approach that blends active derivatives management with yield-oriented deployment. The company said it is already using options to help manage Bitcoin volatility and to generate premium income. It also stated that it deploys some BTC through lending and other yield-generating arrangements.

This matters because options and yield structures can change the risk profile of a “Bitcoin holdings” headline. While spot exposure can be a straightforward mark-to-market asset, options premia and collateralized arrangements can introduce additional sensitivities—such as counterparty performance, liquidity, and constraints on how quickly the company can move or liquidate its BTC.

Trump Media also highlighted that the yield/carry strategies are relatively new. That qualifier suggests the company may still be learning how these structures behave under stress conditions, which lines up with its later risk disclosures about counterparties and recoverability.

Risk disclosure: counterparty credit exposure and operational limits

Trump Media warned that its Bitcoin yield strategy creates counterparty credit risk and the possibility of losing assets. The company said it has deployed part of its Bitcoin holdings to third parties via lending, placement and other arrangements designed to earn additional income.

According to the filing, some of these counterparties may not be rated by major credit rating agencies. In that scenario, the company said the counterparties could default during market downturns, liquidity crises or other periods of financial distress.

Trump Media also cautioned that if an arrangement is unsecured, it may be unable to recover its Bitcoin if a counterparty becomes insolvent. Beyond credit risk, it noted operational constraints: when BTC is deployed, the company may have limited ability to sell or pledge it, and counterparties may be able to use the assets at their discretion.

These are the kinds of details that can significantly affect investor expectations. Even if a treasury strategy is designed to reduce volatility or generate income, counterparty failure risk can turn income strategies into loss drivers—especially if recovery terms are weak or assets are not fully secured.

What to watch next

As Trump Media moves to implement its revamped digital-asset treasury framework, investors should focus on how the company structures options, how much BTC remains unencumbered versus pledged, and whether its new approach reduces reliance on unsecured or hard-to-recover yield arrangements during stress periods. The next quarterly filing will likely be the clearest window into whether the framework stabilizes results without increasing counterparty risk.

That makes $70,000 the next area to watch, another round number with the 200-day moving average sitting nearby. Clearing it would put bitcoin above the range where buyers and sellers fought through March and April, a move Kuptsikevich said would shift sentiment meaningfully.

Traders are not there yet. The crypto sentiment index sits at 30, in what is known as the fear zone, and has stayed there since mid-July with occasional dips toward extreme fear.

Bonds and oil set the tone in broader markets. U.S. 10-year Treasury yields rose six basis points on Monday to 4.71%, dragging Australian and New Zealand government bonds down with them, with no cash Treasury trading during Asian hours because of a public holiday in Japan.

Brent crude held at $87.73 a barrel after jumping 5% on Monday, when President Donald Trump made fresh demands on Iran and dimmed hopes of a deal to reopen the Strait of Hormuz. Gold rose for a third session above $4,400 an ounce.

Higher oil feeds into the inflation figures due Wednesday at 8:30 a.m. ET, which is why the rally is weighing on assets that do better when rate rises look less likely.

Fund flows had been running the other way until this week. U.S. spot bitcoin funds took in $865 million across five sessions through Aug. 7, before a provisional outflow of $91 million on Monday.

Keel Infrastructure has shut down all of its U.S. Bitcoin mining operations as the former Bitfarms business redirects its American power portfolio toward artificial intelligence and high performance computing data centers. 

The company disclosed the transition on Aug. 10 alongside second quarter results showing revenue fell 50% from a year earlier to $30.4 million. Net loss reached about $65 million.

The move brings an end to Bitcoin mining at Keel’s sites in Washington and Pennsylvania, but it does not represent a complete exit from mining worldwide. The Delaware based company continues to operate legacy Bitcoin mining assets in Canada while pursuing approvals to convert more Canadian capacity toward HPC and AI workloads.

Keel Infrastructure ends U.S. Bitcoin mining

Keel’s SEC filing shows that the U.S. withdrawal happened in stages. Bitcoin mining at its Washington State site ended on April 28 as the company began converting the location into an 18 MW HPC data center. Mining then ceased at Panther Creek, Scrubgrass and Sharon in Pennsylvania on June 29.

The change is particularly relevant to Keel’s U.S. operations because the company is now trying to reuse power infrastructure originally built around cryptocurrency mining. Panther Creek and Scrubgrass continued selling electricity after their miners were switched off. They had about 60 MW and 63 MW of energized capacity, respectively, that had not been contracted under an electric supply agreement as of Aug. 7. Sharon is being prepared for a planned 110 MW HPC data center.

Keel has also changed its corporate center of gravity. The former Bitfarms completed its redomiciliation from Canada to the United States on April 1. Keel became a Delaware corporation, a U.S. domestic issuer and the ultimate parent of the Bitfarms business. Its common stock trades on Nasdaq under the KEEL ticker.

Bitcoin sales give Keel more cash for the AI shift

Keel’s latest release also shows its Bitcoin treasury continuing to shrink. Between April 1 and Aug. 7, the company sold 1,085 BTC for roughly $75 million. Its remaining balance stood at 1,861 BTC, valued by the company at approximately $121 million for liquidity purposes.

Management made clear that further disposals are planned. During its earnings presentation, Keel said its “intent is to liquidate our Bitcoin position in 2026.” That remains a management plan rather than a completed transaction, meaning the timing and proceeds from the remaining BTC are still dependent on future sales.

Total liquidity reached approximately $819 million as of Aug. 7, comprising $698 million of unrestricted cash and $121 million of unencumbered Bitcoin. That compares with about $533 million of liquidity reported in May, as previously reported in earlier earnings coverage.

Keel also raised $458 million through 1.25% convertible senior notes due in 2032 during the second quarter. Management said the capital is intended in part to support additional power capacity at its Pennsylvania properties, including Panther Creek and Scrubgrass.

Q2 losses show the cost of leaving Bitcoin mining

The transition is already visible in Keel’s financial results. Revenue from continuing operations fell to $30.4 million from $60.9 million a year earlier. Bitcoin mining revenue alone declined by $29.6 million as the company dealt with lower average Bitcoin prices, higher network difficulty and reduced U.S. mining activity.

The U.S. portion of the decline was substantial. U.S. operations generated 37% of second quarter revenue, down from 51% a year earlier. Revenue from U.S. operations fell by $19.9 million compared with Q2 2025, with Keel citing the Bitcoin market, higher network difficulty and the April shutdown in Washington.

Keel recorded a $141 million operating loss, compared with operating income of about $11 million one year earlier. Net loss was $65 million, while the loss from continuing operations was $64 million. The quarter also included large noncash depreciation charges tied partly to the retirement of mining infrastructure at Panther Creek and Scrubgrass.

General and administrative expenses increased to $31.3 million from $19.4 million. Keel attributed the rise partly to stock compensation, professional costs connected with its U.S. redomiciliation and hiring staff for its expansion into data center development.

The strategy follows a broader move by listed miners to reuse power intensive Bitcoin infrastructure for AI computing. In related broader industry coverage, several miners have redirected capital and electrical capacity toward AI hosting as mining economics weakened during 2026.

What happens next for Keel’s U.S. data centers

The next test is whether Keel can convert retired mining sites into contracted AI infrastructure. As of Aug. 7, the company had not begun HPC operations or recognized HPC data center revenue at the Washington site or its Pennsylvania properties. That makes the current transition primarily a development story rather than an established new revenue stream.

Keel says commercial talks are advancing. Chief executive Ben Gagnon said there were “multiple prospective tenants negotiating for each one” of the company’s three priority sites. However, Keel has not publicly named those prospective tenants or announced a signed customer lease for the sites in its latest results. The customer negotiations therefore remain a company reported commercial process rather than booked revenue.

Permitting is also unfinished. Panther Creek and Sharon have received zoning and land development approvals, while environmental permits remain in progress. Panther Creek has 350 MW of secured utility capacity, and management said its earliest expected ready for service date remains in 2027.

Keel has not abandoned Bitcoin mining everywhere. Its Canadian mining assets remain operational while it pursues further HPC conversions, including a proposed 96 MW data center campus in Sherbrooke, Quebec. Local approval has been obtained for the power transfer, although the change to HPC and AI use remains subject to provincial review.

For Keel, the U.S. pivot has therefore moved beyond planning: the miners are now off, mining equipment has been designated for sale and capital has been raised. The remaining milestones are more difficult to measure in advance. Permits must be completed, tenants must sign contracts, construction must proceed and the former mining sites must begin producing HPC revenue before the new model can be judged on operating performance.

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“We view this as the first of several rulemakings the SEC will undertake to provide regulatory certainty for crypto assets after the Senate failed before the August recess to advance the Clarity Act on crypto market structure,” TD Cowen analyst Jaret Seiberg wrote in a client note sent after the SEC’s notice.

The proposal is expected to give a path to crypto firms enabling them to raise capital for projects without triggering SEC registration requirements, and the businesses are also expected to be provided an exit path for getting clear of the agency’s jurisdiction when they’re not engaged in hands-on management of the projects anymore.

Before this, Atkins and the agency had rolled through a lengthy series of crypto policy statements meant to clarify its regulatory position on digital assets, but the staff statements have little long-term durability. A formal rulemaking would be more difficult to reverse in the future.

But the rule will likely take further months to develop and finalize. This first stage will come with a comment period — typically two or three months — and be followed by a potentially lengthy rewrite.

Reg Crypto would join some of the other significant steps the agency has taken or is still working on to foster the U.S. crypto industry. One of the major moves was a joint stance with the Commodity Futures Trading Commission on a “taxonomy” to define how they view various crypto assets and which jurisdictions they belong in. The agency is also still working on its tokenized securities approach, which Atkins routinely mentions as one of the SEC’s marquee crypto maneuvers.

Trump Media said it plans to revamp its digital asset treasury strategy after unrealized losses on crypto and securities helped push the company to a $238 million net loss in the second quarter.

The company reported $190.4 millio n in unrealized losses across its digital assets, pledged digital assets and equity securities in its Q2 earnings release on Monday.

Trump Media said the new framework is intended to preserve its long-term digital asset exposure while managing volatility and improving the productivity of its balance sheet.

Trump Media is the publicly traded company behind Truth Social, Truth+ and financial services brand Truth.Fi. The company is tied to US President Donald Trump, who is the sole beneficiary of a trust that held about 41.1% of Trump Media’s voting power as of Feb. 25, according to its latest annual report.

Related: Trump Media sells Wall Street low-latency access to Trump posts

Its Q2 filing shows 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. 

The company also said it plans to direct more resources toward Truth Social, Truth+ and other parts of its media business as part of a broader shift in how it allocates capital.

Trump Media boosts Bitcoin holdings after Q2

Trump Media’s Bitcoin holdings were little changed during the second quarter before the company stepped up its direct Bitcoin exposure in July.

As of June 30, Trump Media held 9,477.16 Bitcoin, down from 9,542.16 BTC at the end of the previous quarter.

Separately, the company had pledged 2,077.34 BTC as collateral for its options strategy. Of its reported holdings, 4,260.73 BTC was serving as collateral for convertible notes. 

Related: Strategy turns 1,690 BTC into $108.6M STRC buyback

In July, the company sold Bitcoin-related securities worth $159.6 million and used the proceeds to purchase Bitcoin.

By July 31, Trump Media reported holding approximately 14,139 BTC, including pledged Bitcoin, worth about $890.5 million at the time.

Trump Media flags risks from Bitcoin yield strategy

Trump Media also warned that its efforts to earn additional income from its Bitcoin carry counterparty credit risk and the potential loss of its assets.

The company said it has deployed a portion of its Bitcoin holdings to third parties through lending, placement and other yield-generating arrangements, which it described as relatively new strategies.

Some of those 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 be unable to recover its Bitcoin if a counterparty becomes insolvent. Trump Media is also limited in its ability to sell or pledge Bitcoin while it is deployed, while counterparties may use those assets at their discretion. 

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