Trump Media & Technology Group (DJT), the company behind Truth Social and majority-owned by President Donald Trump's revocable trust, posted 2,000 Bitcoin as collateral for hedge arrangements covering 4,000 Bitcoin in total. This step reduced the Bitcoin shown directly on its balance sheet, according to the company's SEC 10-K filing for the year ended December 31, 2025
In Note 5 (Digital Assets), TMTG explains:
"We entered into collar hedges on 4,000.00 bitcoin with a counterparty during the year ended December 31, 2025, to hedge our exposure to bitcoin’s volatility. To obtain the most favorable economics of these hedges, the counterparty required us to post 2,000.00 bitcoin as collateral that the counterparty can rehypothecate at their sole discretion, resulting in our derecognition of these digital assets. As of December 31, 2025, the fair value of the bitcoin restricted by hedges was $350,600.8, and the written call options from the collar hedges would have originally expired in March 2026. In January 2026, we rolled the call options with the counterparty which increased the strike price and extended the expiration to June 2026. The fair value of the liability on the call option on bitcoin hedged was $7,517.4 as of December 31, 2025, and is recorded within accounts payable and accrued liabilities on our consolidated balance sheet."
The collar hedge strategy protects against large Bitcoin price declines while limiting upside gains. By posting the 2,000 Bitcoin as collateral, TMTG obtained better hedge terms but transferred control to the counterparty, who can use, lend, or sell the assets at their discretion. Accounting rules required removing the 2,000 Bitcoin from reported holdings, contributing to a $63.1 million loss on the transaction.
As a result, TMTG's current reported Bitcoin holdings stand at 9,542.16 Bitcoin, with a fair market value of approximately $836.4 million as of December 31, 2025. This compares to 11,542.16 Bitcoin reported in the September 30, 2025, 10-Q filing, valued at around $1.32 billion at that time. The 2,000 Bitcoin difference directly reflects the collateral posted for the hedges.
Analysts, including Arkham Intelligence's Emmett Gallic, emphasized that this was a deliberate risk-management move rather than a cash sale, allowing TMTG to maintain exposure to Bitcoin's potential upside while hedging downside risk.
The adjustment is part of TMTG's broader 2025 cryptocurrency strategy, which included building significant Bitcoin positions earlier in the year. The company continues to hold substantial digital assets overall.