Company: DJTWW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001140361-25-040977
Chunk: 229

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 229
---
From time to time, we may write covered put and call options on digital asset related securities, as part of our digital asset treasury strategy to generate premium income and purchase digital assets
      and related securities at lower effective prices.  These options are covered by cash collateral to cover potential purchases. In exchange for this commitment, we receive premiums immediately paid in cash. The difference between the premium and the
      amount paid while affecting a closing purchase transaction, including brokerage commission, is also treated as a realized investment gain or loss.  This premium acts as income, increasing our investment yield.  If the option expires worthless, we
      keep the full premium as profit with no obligation to purchase. If a put option is exercised, we buy the security at the strike price using the cash collateral, and the premium received reduces the effective cost basis, allowing us to acquire the
      securities at a discount compared to direct market purchases.  If a call option is exercised, we sell the security at the strike price using our existing holdings of the security, and the premium received reduces any loss or increases any gain we may
      incur.

The writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. The aggregate fair value of unexpired options written are included in
      accounts payable and accrued expenses in the condensed consolidated balance sheets. Cash held as collateral for written options is classified as restricted cash on the condensed consolidated balance sheet. Securities held as collateral for
      outstanding call options are presented within trading securities on the condensed consolidated balance sheet. As of September 30, 2025, we had $309,000.0 of cash restricted covering our unexpired put options.

Digital Assets

      Our digital assets as of September 30, 2025, consisted of our investments in bitcoin and Cronos. We retain ownership of and control over our digital assets and use third-party custodial services to secure it. The cost
        basis of our digital assets is calculated using the weighted-average method.

Digital assets purchased are initially recorded at cost, including capitalizing transaction costs or fees, and subsequently, remeasured at fair value based on the exchange quoted price each reporting
      period, with changes in fair value recognized on the condensed consolidated statement of operations.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, see Note 2 to our condensed consolidated financial statements.

          Item 3.
          
            Quantitative and Qualitative Disclosures About Market Risk

Quantitative and qualitative disclosures about market