Hiltzik: Trump Media's latest financial disclosure raises fresh concerns among investors

Trump Media's Financial Struggles and Unconventional Strategies

President Trump during a Medal of Honor ceremony at the White House, March 2, 2026. (Andrew Harnik / Getty Images)

With a constant stream of headlines involving Trump—ranging from international affairs to domestic controversies—some significant developments can easily be overlooked. One such case is the latest annual financial report from Trump Media and Technology Group (TMTG), released last Friday and covering the 2025 fiscal year.

TMTG, which is majority-owned by Donald Trump (holding 52% of shares) and listed on Nasdaq under the ticker DJT, serves as the parent company for Truth Social, Trump's social media venture.

"The value of TMTG’s brand may diminish if the popularity of President Donald J. Trump were to suffer."

— Disclosed risk factor from Trump Media

The report has received scant attention from the media, which is unfortunate given its revealing—if troubling—contents. According to the filing, TMTG posted a staggering loss of $712.1 million in 2025, while generating only about $3.7 million in revenue. This marks a sharp decline from 2024, when losses totaled $409 million on revenues of $3.6 million. The company attributes much of this deficit to "loss from investments."

Truth Social's Limited Reach

Truth Social, the flagship platform of TMTG, primarily serves as a channel for Trump's personal posts and occasional official statements. However, since these messages are frequently picked up by other media outlets or reposted on platforms like X, users have little incentive to join Truth Social directly.

This may account for the platform's modest user base—estimated at around 2 million active users by Search Logistics. In contrast, X boasts approximately 450 million monthly users, while Facebook surpasses 2.9 billion.

Given these figures, it's not surprising that TMTG downplays conventional social media metrics such as average revenue per user or active user counts. The company argues that focusing on these numbers could encourage short-term thinking at the expense of long-term innovation and growth.

Alternative Measures of Success

Instead of traditional benchmarks, TMTG suggests it should be judged by its commitment to launching new features, products, and technologies. Still, the company concedes that its fortunes are closely tied to Trump's personal brand and public image, warning that any decline in his popularity could erode the value of TMTG's brand.

Stock Performance and Financial Maneuvers

After its initial public offering, TMTG's stock peaked at $66.22 on March 27, 2024. By the following year, shares had plummeted to $11.08—a drop of 83% from the IPO price.

Recent months have seen TMTG engage in a series of complex financial transactions. In May, the company announced plans to raise $3.5 billion from institutional investors to purchase bitcoin, funded by issuing new shares. This move aligned with Trump's broader push for cryptocurrency adoption, including an executive order to promote digital assets and criticism of the Biden administration's regulatory efforts as a "war on cryptocurrency."

During Trump's tenure, federal regulators have closed several crypto-related investigations, and he has floated the idea of a government-backed crypto reserve, which briefly sent bitcoin prices soaring in early March.

Partnerships and Crypto Investments

TMTG also entered into a partnership with Crypto.com, a Singapore-based crypto services company known for its naming rights to the Los Angeles arena. In August, the two firms agreed on a strategy centered around Cronos tokens, with TMTG initially acquiring 6.4 billion Cronos valued at $1 billion.

By the end of 2025, TMTG held 756.1 million Cronos, purchased for about $114 million. However, the value of these tokens had dropped to roughly nine cents each by year's end, resulting in a paper loss of $46 million. As of the latest trading, Cronos had fallen further, deepening TMTG's losses to about $56.5 million—nearly half its investment.

The structure of the deal was intricate: Crypto.com bought $50 million in TMTG stock, while TMTG acquired $105 million in Cronos. The ultimate beneficiary of this arrangement remains unclear, though Crypto.com may have benefited from favorable regulatory outcomes during the Trump administration.

On March 27, the SEC officially closed an investigation into Crypto.com that had begun under the previous administration. Trump replaced the crypto-skeptical SEC chair Gary Gensler with Paul Atkins, who is more supportive of digital assets.

Crypto Treasuries and Market Volatility

Crypto treasury strategies have become popular, allowing investors to gain exposure to digital assets without directly holding them. When asked about Cronos' declining value, a Crypto.com spokesperson attributed it to broader market trends typical of a bear market. TMTG echoed this sentiment, expressing continued optimism about the Cronos ecosystem despite the losses.

Trump's close ties to crypto companies have drawn criticism from House Democrats, who released a report in November highlighting concerns about potential conflicts of interest. The White House dismissed these claims, asserting that Trump acts in the nation's best interests.

Venturing into Fusion Energy

In December, TMTG announced a new direction: a merger with TAE Technologies, a California-based company developing nuclear fusion technology. The combined entity is projected to be worth $6 billion, with TMTG contributing $200 million at closing and another $100 million later. The company also indicated it may spin off Truth Social into a separate public company after the merger.

These moves add further complexity, as TAE is privately held and the value of Truth Social remains speculative. Shareholders may find it difficult to assess the potential outcomes of these deals.

The fusion energy sector itself is highly speculative. While TAE is one of the more established players, no company has yet demonstrated the ability to produce commercial-scale electricity from fusion. Some experts believe it could be a decade or more before the technology becomes viable, and significant technical hurdles remain.

The Uncertain Future of TMTG

TMTG was originally established to position Truth Social as a free speech alternative to mainstream social media platforms. However, with the possibility of spinning off Truth Social and the company's expansion into unrelated sectors like cryptocurrency and fusion energy, TMTG is becoming a patchwork of disparate ventures, all ultimately tied to Trump's personal brand.

For those interested in investing in Trump himself, TMTG offers a direct route. Yet, the company's latest financial disclosures suggest that this may not be a wise investment from a purely financial standpoint.

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