President Donald Trump’s social network, Truth Social, is on life support.
Shares of the company that runs it, Trump Media and Technology Group (TMTG), hit a record low this week. Despite an initial surge of enthusiasm after its launch, the company has incurred massive losses, with the company showing increasingly blaring warning signs since Trump took office again in January.
Shares are down almost 70 percent since the beginning of the year, and down over 80 percent since hitting a record high following the merger last year during the runup to the election. The firm merged with blank check acquisition company Digital World Acquisition Corp. in March 2024, allowing it to be publicly traded under the ticker DJT.
The value of the stock is hovering at just $10.73 at the time of writing, barely above Digital World Acquisition Corp.’s October 2021 initial public offering.
The company has spent tens of millions of dollars on building out its ailing social media business while revenue has flatlined. According to a recent statement obtained by Bloomberg, TMTG lost a staggering $55 million over the three months ending on September 30, as well as abysmal net sales of less than $1 million over the quarter. It has yet to return a profit.
That’s despite throwing everything at the wall in a desperate effort to turn it from a meme stock into a viable business. TMTG even got into the cryptocurrency-based prediction market last month to cash in on the burgeoning trend.
While Trump’s Truth Social did see some gains in terms of user numbers this year, as Forbes reports, the platform remains far smaller than its competitors like Elon Musk’s X-formerly-Twitter and Bluesky.
Where TMTG will go from here remains largely unknown. However, an ongoing crypto crash is “unlikely to help future profits,” as Bloomberg points out. The firm held around $1.3 billion in Bitcoin as of the end of September.
Trump has been a major proponent of crypto, helping Bitcoin soar to record highs. However, a growing bear market has wiped out those gains since then, sending the digital token below $94,000 last week and meaning that Truth Social’s Bitcoin has lost a substantial portion of its value.
More on TMTG: It’s Interesting How Truth Social Moved to Sell Stock Right Before Trump’s Tariffs Were Announced
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