Trump Media (DJT) Pledges 73% of Its Bitcoin to an Options Program as $1 Billion Note Deadline Nears
By Micah Zimmerman
AI summary of the source article
Trump Media pledged approximately 73% of its 15,649 bitcoin to an options yield program allowing counterparty rehypothecation. The move precedes a November 30 deadline when holders of $1 billion in convertible notes can demand cash redemption.
Why it matters
The company entered the program to "generate yield on these assets and increase our principal balance of bitcoin," with management aiming to "preserve as much of our Bitcoin as possible to continue our yielding strategy and allow that asset to recover."
Key facts
- Trump Media pledged 11,385.20 BTC, carrying a fair value of $951.4 million at quarter-end, to a bitcoin yield management program permitting counterparty rehypothecation.
- Holders of $1 billion in convertible notes can require Trump Media to repurchase them for cash on November 30, with 4,260.73 BTC set aside as note collateral.
- The options program buys and sells covered calls and puts, settled in bitcoin, with premiums immediately reinvested via a digital asset manager.
Source excerpt · Bitcoin Magazine
Bitcoin Magazine Trump Media (DJT) Pledges 73% of Its Bitcoin to an Options Program as $1 Billion Note Deadline Nears Trump Media's Q3 10-Q shows 11,385 of its roughly 15,649 bitcoin pledged to an options program whose counterparty can reuse the coins, with nearly all the rest backing $1 billion of notes holders can put back Nov. 30. This post Trump Media (DJT) Pledges 73% of Its Bitcoin to an Opt…