Parent company of Trump’s Truth Social reports $400M loss

The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York. (AP Photo/John Minchillo, File)

The parent company of Truth Social, U.S. President Donald Trump’s social media platform, reported a net loss on Friday of more than US$400 million in the first quarter -- mostly from tumbling cryptocurrency valuations.

Trump Media & Technology Group (TMTG) reported revenue of less than US$1 million for the three months ending March 31, according to a company filing.

The president, who routinely uses Truth Social to make official announcements, controls about 41 per cent of TMTG’s shares, which are held in the trust established to manage his financial interests during his presidency.

TMTG is also active in financial services, and the company announced US$2.5 billion in funding a year ago to invest in cryptocurrencies, one of Trump’s recent passions.

But the plunge in digital currencies hit this part of the business hard as the price of Bitcoin tumbled from over US$126,000 in early October to below US$70,000 in March.

It has since rebounded somewhat to over US$80,000.

Because the company is required to reveal the value of its investments, even if it hasn’t sold them, it recorded a loss of US$406 million for the first quarter.

“The vast bulk” of the loss was due to digital assets, the company stated.

According to its filing, TMTG generated US$900,000 in revenue during the first quarter, a paltry amount for a company valued at US$2.47 billion on the stock market.

The company says it continues “to focus on expanding its infrastructure and audience to prepare for future monetized features.”

TMTG said in December that it is merging with the American company TAE, which is developing nuclear fusion technology.

That deal was expect to close in mid-2026.