The company Trump Media & Technology Group, which is owned by the family of US President Donald Trump and owns the social network Truth Social, found itself facing a debt crisis. By November 30, the company needs to repay up to $1 billion in liabilities, and for this it may be forced to sell part of its bitcoin reserve or raise expensive loans.
The debt arose from the convertible bonds that Trump Media issued to finance the purchase of Bitcoin. According to the terms of the issue, the holders of the papers could exchange the debt for shares of the company at a price of $34.72 per piece. However, since the beginning of the year, shares of Trump Media have fallen more than 60% to $4.64. At such a difference, it is more profitable for investors to claim their money back than to convert the bonds into shares at a price that is more than 7 times the current market price.
Why is the company short of cash?
As of the end of the third quarter, Trump Media's assets were estimated at almost $2.5 billion, but only about $395 million of this amount is cash and cash equivalents, that is, funds available for quick settlement with creditors. The remaining assets, in particular the cryptocurrency reserve of approximately $1.36 billion, cannot be quickly converted into cash. In nine months, the company registered a loss of $234 million.
The situation is complicated by the fact that bitcoin itself has lost about a third of its value over the past year. Trump Media acknowledged in its quarterly filing that it could raise debt to repay the bonds, but warned that such financing could be expensive or unavailable. If neither option works, the company will have to sell some of the bitcoins.
Acting CEO Kevin McGhern told investors that the company plans to combine its own funds with debt to preserve as much of the bitcoin reserve as possible. It will be recalled that back in July 2025, Trump Media reported on the purchase of bitcoin and related securities worth about $2 billion, and also allocated another $300 million for the strategy of buying options on bitcoin.
The history of Trump Media shows how quickly a risky bet on cryptocurrency can turn into liquidity problems: the fall in the price of bitcoin and stocks at the same time presented the company with a choice - expensive loans, the sale of digital assets or default on debt obligations.
