Trump Media & Technology Group Corp.(US:DJT)2025-11-07 14:40Financial Position - As of September 30, 2025, the company reported cash and cash equivalents totaling $3,106,527.3 thousand and debt of $950,769.1 thousand[152]. - As of September 30, 2025, the company had $3,106,527.3 million in cash and cash equivalents, with $950,769.1 million in debt[205]. - As of September 30, 2025, the company held trading securities valued at $584,865.1, a significant increase from $0.0 at December 31, 2024[230]. - The company reported a maximum exposure to loss from unconsolidated VIEs limited to $0 as of September 30, 2025, and December 31, 2024[227]. - As of September 30, 2025, the company had $309,000.0 of cash restricted covering unexpired put options[233]. - The company does not hold any investments classified as available-for-sale as of September 30, 2025[231]. Revenue and Expenses - Revenue for the three months ended September 30, 2025 decreased by $38.0 thousand, or 4%, to $972.9 thousand compared to $1,010.9 thousand for the same period in 2024, primarily due to advertising economics and early-stage advertising initiatives[180]. - Revenue for the nine months ended September 30, 2025 increased by $59.1 thousand, or 2%, to $2,677.4 thousand compared to $2,618.3 thousand for the same period in 2024, driven by paid subscriptions to the Truth+ streaming service[192]. - Cost of revenue increased by $323.5 thousand, or 262%, to $446.8 thousand for the three months ended September 30, 2025, driven by content license and data center lease costs for the Truth+ platform[181]. - Cost of revenue for the nine months ended September 30, 2025 rose by $873.5 thousand, or 345%, to $1,126.4 thousand, mainly due to content license and data center lease costs[193]. - The change in fair value of digital assets resulted in an expense of $16,204.6 thousand for the nine months ended September 30, 2025, compared to $0.0 thousand in the prior year, reflecting market price changes of bitcoin and Cronos investments[197]. Operating Activities - Net cash provided by operating activities was $2,638.8 million for the nine months ended September 30, 2025, an improvement of $55,278.8 million compared to the prior year[217]. - Net cash used in investing activities was $1,973,108.2 million for the nine months ended September 30, 2025, significantly higher than $312,773.7 million in the same period of 2024, primarily due to digital asset purchases[218]. - Net cash provided by financing activities was $2,302,144.8 million for the nine months ended September 30, 2025, compared to $734,976.7 million in the prior year, driven by proceeds from convertible notes and PIPE financing[219]. Investment and Digital Assets - The company has filed registration statements for three cryptocurrency ETFs and five equity ETFs, focusing on digital assets and traditional securities[166]. - TMTG's digital asset strategy includes acquiring bitcoin and related securities, with plans to monitor market conditions for future purchases[168][171]. - The company entered into a business combination agreement to establish a digital asset treasury company focused on acquiring Cronos cryptocurrency[172]. - Expected funding for the digital asset treasury includes $1 billion in Cronos and $200 million in cash, aiming to create the largest digital asset treasury company by market cap ratio[173]. - The company plans to implement a forward-looking digital asset treasury strategy centered on the accumulation and management of Cronos, enhancing capital efficiency[174]. - The company has invested in bitcoin and bitcoin-related assets, with bitcoin prices fluctuating between $66,000 and $126,000 in the past 12 months, indicating high volatility[238]. - The company’s digital assets consist of investments in bitcoin and Cronos, with ownership and control retained by the company[234]. - The company’s trading securities primarily consist of equity exchange-traded funds that invest in digital assets[230]. Expenses and Financial Performance - Research and development expenses rose by $4,408.5 thousand, or 113%, to $8,302.2 thousand for the three months ended September 30, 2025, largely due to increased stock-based compensation and IT consulting costs[182]. - General and administration expenses increased by $13,359.1 thousand, or 75%, to $31,056.1 thousand for the three months ended September 30, 2025, attributed to higher stock-based compensation and legal fees[184]. - Interest income surged by $8,731.4 thousand, or 188%, to $13,384.4 thousand for the three months ended September 30, 2025, due to higher cash and investment balances[187]. - Interest expense skyrocketed by $11,227.7 thousand, or 4,551%, to $11,474.4 thousand for the three months ended September 30, 2025, primarily from accreted interest on loans related to acquisitions[188]. - Depreciation and amortization expense increased by $4,745.3, or 615%, to $5,516.8 million for the nine months ended September 30, 2025, compared to $771.5 million for the same period in 2024[198]. - Interest income rose by $31,401.6, or 461%, to $38,216.1 million for the nine months ended September 30, 2025, due to higher cash and investment balances[199]. - Interest expense increased by $12,859.8, or 442%, to $15,766.3 million for the nine months ended September 30, 2025, attributed to accreted interest on loans from acquisitions[200]. - Investment income reached $12,069.5 million for the nine months ended September 30, 2025, a 100% increase from $0.0 million in the prior year[201]. Corporate Strategy - TMTG is focusing on diversifying into new sectors and pursuing mergers and acquisitions to evolve into a larger holding company for various products and services[177]. - The company authorized a Share Repurchase Program of up to $400,000.0 million, having repurchased 355,208 shares at an average price of $18.02 per share[215]. - The Standby Equity Purchase Agreement allows the company to sell up to $2,500,000.0 million of common stock, with no shares sold under this agreement during the nine months ended September 30, 2025[208]. - The company has consolidated Yorkville America in its financial statements, reflecting its status as the primary beneficiary with no material assets or liabilities upon initial consolidation[224]. - The company has not provided any guarantees related to Yorkville America, and no creditors of Yorkville America have recourse to the general credit of the company[225]. - The company has determined that it has a variable interest in four VIEs for which it is not the primary beneficiary[226].