Trump Media pulls back from crypto after $555M in Bitcoin losses, cancels CRO staking venture, and faces SEC probe into TRUMP memecoin. Merger with TAE Technologies takes priority.
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Trump Media & Technology Group has lost more than $555 million on its Bitcoin holdings and is walking away from plans to build a crypto financial products business, the company said. The parent of Truth Social will instead focus on its core media and data operations ahead of a planned merger with fusion-energy firm TAE Technologies.
The retreat includes a canceled venture with Crypto.com and Yorkville Acquisition Corp. that would have created a publicly traded company to buy and stake the CRO token. TMTG cited "prevailing market conditions and shifting business and stakeholder priorities" in a statement that ended the Trump Media Group CRO Strategy.
TMTG is not abandoning crypto entirely. It is shifting to a distribution and partnership model where Crypto.com will offer the products while TMTG concentrates on its audience and data. Plans to embed prediction markets directly into Truth Social have been dropped; instead, TMTG will advertise Crypto.com's prediction-market products to its users.
The strategic change comes as TMTG prepares for its merger with TAE Technologies. Acting CEO Kevin McGurn wants to simplify the company's focus and concentrate resources on top priorities, the company said.
Separately, Democratic Senators Richard Blumenthal and Elizabeth Warren have asked the Securities and Exchange Commission to investigate the Official Trump (TRUMP) memecoin. The token crashed about 98% from its peak, costing over 1 million investors more than $3.81 billion, the senators wrote. Trump and early participants made about $636 million, a pattern the lawmakers said resembles a rug pull.
Trump Media's own Bitcoin investment has been a drag. The company held about $1.456 billion in Bitcoin (BTC) during the 2025 rally, booking an unrealized gain of roughly $88 million. That gain reversed after Bitcoin's decline. TMTG later sold 2,628 BTC for $165.07 million, losing about $145 million. In 2026 it sold 7,281 BTC for $545 million at an average price near $74,860, locking in about $318 million in losses. The total losses on Bitcoin amount to $555 million, according to the company's filings.
Trump's broader cryptocurrency businesses reported earning about $1.4 billion in 2025, which has prompted calls for the CLARITY Act to include ethics provisions. A tax-deferral clause has also been added to address the potential tax burden from a forced asset sale, lawmakers said.
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