Donald Trump's Truth Social appears to be in deep financial trouble.
According to Trump Media & Technology Group, Truth Social, the social network owned by former president and current Republican presidential candidate Donald Trump, posted a staggering loss of $327.6 million in the first quarter of 1 2024. This figure is a stark contrast to last year's loss of $58 million, signaling a sharp decline in the platform's revenues. However, its moderators remain optimistic, emphasizing their focus on long-term product development.
A loss of $6.3 million resulted from the closing of the merger with Digital World Acquisition, a special purpose acquisition company, or SPAC, which was necessary for the company to go public. The bulk of the loss, $311 million, was due to the conversion of notes and the settlement of debt ahead of the initial public offering venue.
In mid-April 2024, TMTG unveiled plans to sell 146 million shares, including 114 million shares owned by Trump himself. Against this background, the company's stock briefly plunged by 14%. Currently, TMTG’s market capitalization is $6.6 billion. In the first three months of the year, the firm earned a revenue of $770,500, marking the second straight quarter where its revenue totaled less than $1 million.
Earlier, Donald Trump’s team reportedly posted a campaign video on his Truth Social that included reference to a "unified Reich" in case of the billionaire’s victory in the US presidential election.