President Donald Trump’s “Truth Society” bid for Trump Media & Technology Group (TMTG) has burned through a lot of cash.
The company, which owns the president’s struggling far-right social media platform, released a shocking financial report earlier this month showing it lost a staggering $712.1 million last year while making a paltry $3.7 million in profit.
The disastrous numbers once again highlight how firmly the company has cemented itself as a measure of the president’s popularity rather than a viable business. The company is 52% owned by Trump and trades under his initials DJT.
As Trump’s war with Iran intensifies, polls show his approval ratings continue to decline.
A similar story unfolded for his social media company, with shares falling to a record low of $9.73 on Friday. The company hit an all-time high of nearly $80 shortly after merging with a blank-check acquisition company in March 2024, a move that allowed it to become publicly traded.
It’s been a long slideshow from that point on. Even the dubious move to “distribute digital tokens” to investors late last year didn’t seem to boost excitement, and the company’s valuation began a roller coaster ride that largely coincided with the rise and fall of Trump’s public image.
Along the way, many executives have become wealthy from selling stock, much of it borne by the president’s most ardent supporters.
To preserve its own survival, TMTG has made several attempts to reinvent itself, from venturing into cryptocurrency-based prediction markets to purchasing $2 billion in Bitcoin to merging with fusion power generation company TAE (formerly known as Tri Alpha Energy) in December.
It’s an extremely long-term bet, considering that scientists are just beginning to decipher how highly complex fusion reactors—designed to harness the energy of fusing atoms—can produce more energy than is necessary to operate.
Trump Media CEO Devin Nunes claimed in a statement at the time that “fusion power will be the most dramatic energy breakthrough since the advent of commercial nuclear power in the 1950s.”
It’s unclear whether its latest fusion bet will pay off in the long term. as financial times It was reported late last month that TMTG said it was in “ongoing discussions” about the possibility of spinning off its businesses, including its iconic Truth Social, into a new publicly traded company.
If the spinoff is successful, it will reportedly be assisted by a special purpose acquisition company called Texas Ventures III, which has a long track record of helping the Trump family when they need it. financial times.
More on Trump Media: Truth Society stock explodes on merger with fusion company
