The parent company of President Donald Trump’s Truth Social showed a net loss of over $400 million in the first quarter.
The losses are believed to have come mostly due to tumbling valuations of cryptocurrency, as per Agence France Presse. Trump Media & Technology Group (TMTG) reportedly had revenue of less than $1 million for the three months, which ended March 31, as per the company filing.
Trump, who mostly uses Truth Social to make official statements, holds about 41 percent of TMTG’s shares. These are currently in a trust which was established to manage his financial interests while he is president. TMTG, which is active in financial services, had made the announcement a year back that they’d provide funding to the tune of $2.5 billion to invest in cryptocurrencies.
Why Trump Media suffered loss
The digital currencies market saw a sharp plunge which hurt this aspect of the company. Bitcoin tumbled from over $126,000 in early October to below $70,000 in March. It has now come back to somewhat to over $80,000.
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The company showed a loss of $406 million for the first quarter, and stated that the ‘vast bulk’ of loss was because of digital assets. TMTG generated $900,000 in revenue during the first quarter. By contrast, it is valued at $2.47 billion on the stock market.
What’s next for Trump Media
As per the company, it continues “to focus on expanding its infrastructure and audience to prepare for future monetized features.” CEO Kevin McGurn has kept a positive outlook.
“Trump Media is using its strong balance sheet and positive operating cash flow to continue growing all our businesses and platform infrastructure. Even as we work toward advancing our proposed merger with TAE Technologies as quickly as possible, we’re identifying new growth opportunities and new ways to increase shareholder value. Truth Social remains a bastion of free speech with innovative enhancements coming soon, and I look forward to rapidly growing our Truth Social and Truth+ communities and building out these powerful, uncancellable platforms for free expression,” he said.
In December TMTG had said that it was merging with the American company TAE, which is working on nuclear fusion technology at the moment. This deal was expected to be closed in mid-2026.
TMTG stock price
As of market close, Trump Media & Technology Group(DJT) shares were valued at $8.93.
(With AFP inputs)
