Trump Media sees $400 million in annual losses after expanding to crypto

Trump Media & Technology Group (TMTG), the parent company of Truth Social, reported a $400.9 million net loss for 2024, according to its annual filing released on Friday. That’s an exponential decline from the $58.2 million it lost in 2023. Revenue took a hit too, dropping 12% year over year to $3.6 million.

The company’s stock, trading under the ticker DJT, dipped 1% in after-hours trading following the announcement. TMTG had initially doubled in value in 2024, riding on the bullish sentiment of Donald Trump’s election victory, but it’s still down 11% for the year, though the company’s market cap stands at $6.59 billion at press time regardless.

TMTG defends its losses

TMTG CEO Devin Nunes, a former Republican Congressman, defended the company’s financial position, saying, “After going public and listing on NASDAQ less than a year ago, TMTG developed quickly in 2024, and this year we aim to continue growing all our platforms.”

In its press release, TMTG blamed part of the decline on a restructured revenue-sharing agreement with an advertising partner, which resulted in lower sales. The company said, “TMTG had $3.6 million in net sales for the year, in addition to $11.6 million in net interest income, such revenue largely resulting from incipient advertising initiatives and tests of other monetization projects with various partners on Truth Social.”

Interestingly though, unlike Meta and other social media giants, Truth Social refuses to disclose key performance metrics such as active users or ad revenue per user. The company claims tracking numbers like this will “divert its focus from strategic evaluation with respect to the progress and growth of its business.”

Trump, the platform’s most high-profile user, currently has 8.9 million followers on Truth Social. On X (formerly Twitter), where Tesla CEO Elon Musk has been working with the Trump administration on government efficiency efforts, Trump has 100.9 million followers.

The company has not held an earnings call since its Nasdaq debut in March 2024, when it completed its long-delayed merger with Digital World Acquisition Corp. The process, which TMTG says was obstructed by Biden’s SEC, turned into one of the longest SPAC deals in history and came with insane legal costs.

Legal fees and stock-based expenses inflate losses

In the earnings report, TMTG disclosed it spent $61 million in operational costs in 2024. Nearly half of that went toward legal expenses, mainly tied to the SEC battle over the SPAC merger. The company also suffered massive non-cash losses—including $107.4 million in stock-based compensation and $225.9 million in derivative liability adjustments.

In the press release, Nunes said Trump Media is actively looking for acquisitions, mergers, and partnerships to expand beyond social media.

Nunes added that: “Americans proved in 2024 that they’re looking for an alternative to cancel culture. They want to conduct business free from debanking, political retaliation, and corporate messaging that violates their values.”

Trump Media bets big on crypto with ‘TruthFi’

Despite the losses, TMTG is pushing into crypto payments. On November 18, just two weeks after Trump won the presidential election, TMTG filed a trademark for “TruthFi”, described as a crypto payment platform for secure digital transactions.

The trademark submission outlines plans to develop downloadable software for a digital wallet and act as a crypto payment processor.

TruthFi could potentially integrate with Truth Social, allowing users to send tips, make donations, and conduct business transactions using Bitcoin, Ethereum, and stablecoins, which Trump prefers because he believes they can keep the US dollar on top.

Way before TruthFi, Trump launched a campaign-driven cryptocurrency token called World Liberty Financial, alongside Donald Trump Jr.. He later credited his youngest son, Barron Trump, for influencing his newfound interest in crypto, saying that he got hooked after Barron showed him his crypto wallets.

The crypto expansion aligns with Trump’s pro-crypto stance as president, which could provide political and regulatory advantages for TruthFi. But whether it will be profitable remains unclear seeing as World Liberty itself has also been hemorrhaging funds.

The crypto payments industry is competitive, and TMTG has yet to prove it can successfully launch and scale a fintech business.

Trump’s media empire still fighting legal and financial battles

TMTG has faced multiple legal and financial challenges since its launch in 2021. In 2023, a financial disclosure from DWAC, the SPAC that took Trump Media public, raised serious doubts about its ability to remain solvent, reporting $31.5 million in losses since inception.

The company has also been under investigation for potential anti-money laundering violations and fraud charges. In November 2023, it sued 20 media outlets for $1.5 billion, accusing them of falsely reporting a $73 million loss.

With its latest financials showing continued struggles, Trump Media is under pressure to turn things around fast. The company is still sitting on $776.8 million in cash and investments, but at its current burn rate, that cushion won’t last forever.

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