What happens when a social media company dives headfirst into crypto just as the market crashes?
For Trump Media & Technology Group, the answer appears to be a staggering $400 million quarterly loss.
The parent company of Truth Social revealed that it lost more than $406 million.
The platform is frequently used by Donald Trump for official announcements. In the first three months of the year.
And surprisingly, the damage wasn’t mainly from the social media business itself. It came from cryptocurrency investments.
TMTG had poured billions into digital assets as part of its growing push into financial services.
But when Bitcoin prices plunged from above $126,000 to below $70,000 earlier this year, the company’s portfolio took a massive hit.
Because firms must report the current value of investments — even if they haven’t sold them — the paper losses piled up quickly.
Losses Outpace Revenue
What makes the numbers even more striking?
The company generated less than $1 million in revenue during the quarter, despite carrying a market value of roughly $2.5 billion.
TMTG says it’s still focused on expanding its audience and building future money-making features.
It’s also betting on futuristic projects, including a planned merger with a nuclear fusion company.
For now, though, the company’s finances tell a familiar Wall Street story: when crypto swings wildly, even politically connected businesses can get burned.
