Trump Media reports 2,000 BTC pledged as collateral in 10-K, reducing reported Bitcoin holdings from 11,542 to 9,542 BTC.
Trump Media & Technology Group has reported a reduction in its Bitcoin holdings in its latest annual filing.
The company disclosed in its Form 10-K that its Bitcoin balance declined from 11,542 BTC to 9,542 BTC. The change reflects 2,000 BTC that were pledged as collateral rather than sold.
Trump Media Reports 2,000 BTC Pledged in 10-K Annual Filing
According to the company’s 10-K filing, Trump Media & Technology Group recorded a decrease of about 2,000 BTC.
The reported balance fell from 11,542 BTC to 9,542 BTC during the reporting period. The filing outlines the accounting treatment related to the pledged assets.
The 2,000 BTC were not sold in the open market. Instead, the Bitcoins were pledged as collateral to a counterparty.
The counterparty has the right to rehypothecate the pledged assets under the agreement terms.
Because of this arrangement, the company no longer retains control over the pledged Bitcoin.
As a result, the company removed the assets from the balance sheet, and the filing explains that accounting standards required this derecognition.
Analysts Cite 10-K Filing to Explain Bitcoin Derecognition
Arkham analyst Emmett Gallic reported the update based on the company’s public filing.
He noted that the disclosure clarifies the reported decrease in Bitcoin holdings. Other market analysts also referenced the 10-K to explain the accounting adjustment.
The analysts stated that the pledged Bitcoin remains tied to a collateral agreement.
However, they are no longer recognized as company-controlled assets. This treatment follows accounting standards related to control and asset recognition.
Market analysts continue to monitor corporate crypto disclosures through regulatory filings.
Analysts often review 10-K and 10-Q reports for updates on digital asset positions. These documents provide details on holdings, pledges, and related agreements.
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Bitcoin Holdings and Corporate Crypto Reporting
Under financial reporting rules, assets must remain under company control to stay on the balance sheet.
When control is limited or transferred, derecognition may be required. Trump Media reported that the pledged Bitcoin met this threshold.
The counterparty’s right to rehypothecate allows it to reuse or redeploy the collateral.
This limits Trump Media’s authority over the 2,000 BTC. Therefore, the company adjusted its reported Bitcoin balance to 9,542 BTC.
Corporate Bitcoin holdings remain closely tracked by investors and researchers.
Public companies must disclose material digital asset positions in annual reports.
Trump Media’s filing provides updated figures and explains the accounting treatment applied.
Source: https://www.livebitcoinnews.com/trump-media-reports-2000-btc-pledged-bitcoin-holdings-fall-in-10k-annual-filing/
