On-Chain Analysis: Is the Trump Crypto Firm Selling Bitcoin at a Loss?

In Trump crypto news today, wallets attributed to Trump Media & Technology Group, the TMTG entity behind Truth Social and majority owned by the Donald J. Trump Revocable Trust, deposited 2,650 BTC valued at approximately $205M into Crypto.com, according to on-chain data reported by Lookonchain, arriving four months after a prior 2,000 BTC transfer worth $175M at an average exit price of $87,378.

This is not a routine custody rebalance or internal wallet migration; it is the second large-tranche outflow from an entity that originally assembled 11,542 BTC at an average cost of $118,522 to a centralized exchange, for a total of $1.37Bn.

The open question the market now has to answer is whether these movements represent a managed drawdown of an oversized crypto treasury position, or whether TMTG is being forced to liquidate Bitcoin holdings at a deepening loss to meet operational demands that Truth Social’s revenue alone cannot cover.

This news came as Bitcoin was trading just under $77,000, following a near-3% drawdown over the past week, with daily volume dropping to $27Bn.

Trump Crypto On-Chain Analysis: What the Wallet Movements Actually Reveal

TMTG deposited $205M to Crypto.com, but the key is their cost basis in Bitcoin. They built their position during a late-2025 surge, peaking at about 11,542 BTC around December 21–22, 2025, with an average acquisition cost of $118,522 per coin.

Recently, TMTG transferred 2,650 BTC at a price below $78,000, resulting in a realized loss of approximately $107M. A prior transfer of 2,000 BTC at $87,378 led to a smaller loss of about $62.3M.

Overall, TMTG realized a combined loss of around $171M from the two transfers. Their remaining Bitcoin holdings have also declined significantly, with a current market value of approximately $455M, reflecting a paper loss of over $915M from an original $1.37Bn treasury. Over 93% of TMTG’s tracked crypto holdings were in Bitcoin, amplifying their exposure to market corrections.

The transactions’ complexity arises from TMTG’s Bitcoin being held through Crypto.com’s institutional infrastructure, complicating the understanding of whether the transfers were for liquidation or internal custody adjustments. However, the scale and timing suggest these were liquidation efforts rather than routine management.

Trump Media Bitcoin Treasury: Why the Entry Price Comparison Changes the Narrative

(SOURCE: Arkham Intelligence)

TMTG is selling a depreciating asset at increasing losses, in sharp contrast to MicroStrategy’s strategy of holding Bitcoin through downturns. Unlike MicroStrategy, TMTG is converting treasury assets to cash during a critical phase, raising concerns about the sustainability of its crypto strategy.

Truth Social, TMTG’s main platform, has generated limited advertising revenue. TMTG’s Bitcoin holdings peaked at approximately $2Bn, with around 18,365 BTC, but are now valued at $455M due to sales and depreciation. Analysts have noted that TMTG’s willingness to sell at a loss diverges from the stronger “diamond hands” approach initially attributed to it.

With multiple Trump-linked crypto disposals recently, including notable liquidations by WLFI holders and declines in meme coin values, the trend raises important questions about the reliability of politically affiliated crypto projects as long-term investments.

The post On-Chain Analysis: Is the Trump Crypto Firm Selling Bitcoin at a Loss? appeared first on icobench.com.