Trump Media has pledged about 73% of its bitcoin to a yield options program, weeks before holders of $1 billion in convertible notes can demand cash.
The company disclosed the pledge in its third-quarter 10-Q filed Monday: 11,385.20 of its 15,649 coins are committed to the program, whose counterparty can reuse the coins.
Key takeaways
- 11,385.20 BTC, worth $951.4 million at quarter-end, is pledged to the yield program and limited for sale or other use while the arrangements stay open.
- A further 4,260.73 BTC, valued at $356.1 million, backs the convertible notes and stays locked until the bond contract’s requirements are satisfied.
- Holders of the $1 billion 0% notes can require full-principal cash buyback on Nov. 30, and the company says it cannot yet know how much will be put back.
- Interim CEO Kevin McGurn said repayment will be “a mix of cash and credit,” with no new equity.
The filing leaves little of the treasury freely available. Another 4,260.73 BTC, valued at $356.1 million on Sept. 30, backs the convertible notes and stays locked away until the bond contract’s requirements are satisfied. The two commitments together cover nearly the entire 15,649 BTC holding that CFO Phillip Juhan put at quarter-end on Monday’s earnings call, alongside 7 million shares of BlackRock’s IBIT.
The yield program works through covered calls and puts on bitcoin, settled in bitcoin. The company writes in the filing that the trades exist to “generate yield on these assets and increase our principal balance of bitcoin.” But the same filing carries a warning: while the trades stay open, the company’s room to sell or redeploy the coins it has put up is restricted, and if a counterparty holds the coins without collateral security behind them, an insolvency on the other side would leave the company with no way to get its bitcoin back.
The deadline behind that warning is November 30, when holders of the $1 billion in 0% senior secured convertible notes maturing in May 2028 can demand from Trump Media a cash payment equal to the notes’ full face value. General Counsel Scott Glabe said the notice round has gone out and holders have until near the end of the month to reply, so the company cannot yet size what it will owe. McGurn said the plan is “a mix of cash and credit” rather than new equity. “We want to preserve as much of our Bitcoin as possible to continue our yielding strategy and allow that asset to recover.”
The quarter’s books give context to the strategy. Net income came to $409.7 million, nearly all of it a $378.1 million mark-to-market gain on digital assets over a stretch that ran from bitcoin near $59,000 in late June to about $84,000 at quarter-end. Underneath that, the operating picture was weaker: adjusted EBITDA ran a $12.3 million deficit for the quarter, and the first nine months of 2026 produced $234.2 million in net losses. Juhan put gross financial assets at $2.3 billion, including $182 million in cash and $211 million in short-term investments.
A shareholder vote on the merger with TAE Technologies is planned for Dec. 14.
