Shares plummeted 24% after losing midterm elections, Trump Media Technology Group (DJT.US) transferred $340 million in BTC to exchanges

According to Woofun AI, the defeat of the Republican Party in the US midterm elections directly caused the stock price of Donald Trump's social media company Trump Media Technology Group (DJT.US) to fluctuate sharply in the New York stock market. It closed at $4.49, a sharp drop of 24.54% from the previous day, and hit an intraday low of $4.46, a record low.

The underlying reason lies in the revaluation of the political risk premium. As the Democratic Party takes control of the Senate and House of Representatives, the market is concerned that Trump-related businesses are facing greater uncertainty. At the same time, on-chain activity fluctuated abnormally. According to Woofun AI on-chain data, Trump's media-related wallets transferred a total of 4,259 BTC to the global digital asset trading platform Crypto.com in two installments, two of which were 2,140 and 2,119, respectively. At current prices, this batch of assets was worth approximately $343.67 million. This is another large-scale transfer of this kind made by the company about 3 months later. The total amount of BTC transferred to Crypto.com since this year is around 9,540, with a total value of about 770 million $13.68 million.

Although the entry of assets into exchanges is generally viewed as a sign of sell-off, the Trump media previously claimed that such operations were only necessary for asset storage and operation, and denied the sale. For example, at the beginning of August this year, the company also transferred about 2,628 BTC, which also stated that it was not for sale.

The more critical variable is the rigid restraint of the debt structure. The amount of BTC transferred this time is almost as much as the amount of BTC the company is providing as a guarantee for convertible bonds, but the two are not the same batch of assets. Trump's media revealed at the end of June that it had provided about 4,260.73 BTC as a guarantee for a convertible bond. The $1 billion convertible note, with zero interest, and a 4% discount on the original issue expires on May 29, 2028, and this portion of the collateral cannot be distributed or withdrawn until then. As of July 31, the company held a total of about 14,139 BTC, and after deducting collateral, there are still about 9,878 pieces that can be used freely. The 4,259 pieces transferred this time should come from this section. Under the terms of the note, the holder also has the right to require the company to repurchase in cash at face value on November 30; if all holders exercise this right, the required capital would amount to approximately $1 billion. When filing with the US Securities and Exchange Commission, Trump's media clearly stated that if they are underfunded, they may sell digital assets such as BTC to raise funds, which makes current transfers interpreted by the market as potential preparation for liquidity.

From a structural point of view, the double impact of a shift in political trends and pressure to maturity debt is reshaping the market's pricing logic for Trump's assets. The purpose of this large-scale BTC transfer has not been confirmed, and the company has not responded whether to sell it, but with a potential redemption scale of $1 billion, the possibility of its asset disposal has increased. Following similar operations in early August of this year, the market once again sent a warning signal about the health of the company's balance sheet. Investors need to be wary of the risk of a short-term liquidity crisis by monetizing crypto assets.