Trump Media sees $400 million in annual losses after expanding to crypto
The post Trump Media sees $400 million in annual losses after expanding to crypto appeared on BitcoinEthereumNews.com.
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…
Filed under: News - @ February 15, 2025 2:15 pm