Company: DJTWW
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028418
Chunk: 255

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 255
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 to bitcoin and other digital assets as a medium of exchange and store of value, particularly on digital asset trading platforms. As of June 30, 2025, two of the seven largest digital assets by market capitalization were U.S. dollar-pegged
        stablecoins.
       
      Additionally, central banks in some countries have started to introduce digital forms of legal tender. For example, China’s CBDC project was made available to
        consumers in January 2022, and governments including the United States, the United Kingdom, the European Union, and Israel have been discussing the potential creation of new CBDCs. Whether or not they incorporate blockchain or similar technology,
        CBDCs, as legal tender in the issuing jurisdiction, could also compete with, or replace, bitcoin and other digital assets as a medium of exchange or store of value. As a result, the emergence or growth of these or other digital assets could cause
        the market price of bitcoin to decrease, which could have a material adverse effect on our business, prospects, financial condition, and operating results.
       
      Our bitcoin holdings will be less liquid than our existing cash and cash equivalents and may not be able to serve as a
        source of liquidity for us to the same extent as cash and cash equivalents.

        54

      Historically, the bitcoin market has been characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign
        currencies markets, relative anonymity, a developing regulatory landscape, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and various other risks inherent in its entirely
        electronic, virtual form and decentralized network. During times of market instability, we may not be able to sell our bitcoin at favorable prices or at all. For example, a number of bitcoin trading venues temporarily halted deposits and
        withdrawals in 2022. As a result, our bitcoin holdings may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.
       
      Further, bitcoin we hold with our custodians and transact with our trade execution partners does not enjoy the same protections as are available to cash or
        securities deposited with or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation.
       
      Additionally, we may be unable to enter into term loans or other capital raising transactions collateralized by our unencumbered bitcoin or otherwise generate
        funds using our bitcoin holdings, including in particular during