Trump Media recently sold 2,650 Bitcoin at a value of $205 million, in a move reflecting growing distress among institutional holders amid Bitcoin’s falling price. The digital asset’s value has dropped significantly from previous peaks, forcing companies like Trump Media to reduce their BTC exposure to contain mounting losses.
The company initially acquired 11,542 Bitcoin at an average price exceeding $118,000 per coin, investing over $1.3 billion. With Bitcoin now hovering near $77,000, Trump Media’s Bitcoin holdings have recorded a paper loss of approximately $455 million. This sell-off follows a similar transaction four months prior when the firm offloaded 2,000 BTC valued at $175 million.
In the first quarter, Trump Media reported $402 million in total losses, with $244 million linked directly to digital assets including Bitcoin. These losses contributed to a steep decline in the company’s stock, which has fallen about 40% year-to-date and nearly 67% over the past year.
Trump Media’s actions mirror a broader trend among U.S. institutional investors, who are increasingly reluctant to maintain or acquire Bitcoin amidst sustained price weakness. Other firms, such as Kulr Technology, have also sold substantial Bitcoin holdings recently, indicating a wider shift toward liquidation rather than accumulation.
Market indicators like the Coinbase Premium Index highlight this sentiment shift. The index, which measures buying pressure on Coinbase, has remained largely negative in recent weeks, suggesting most investors are selling rather than buying Bitcoin. This trend also influenced firms like Strategy, which signaled plans to fund debt repurchases through Bitcoin sales, further underscoring the shift.
The growing pattern of institutional Bitcoin sales raises concerns over broader market stability. Should sustained offloading continue, it could intensify downward pressure on Bitcoin prices and fuel increased volatility in the crypto market.