Bitcoin
Donald Trump’s media company is morphing into something very different from what it started out to be. Trump Media & Technology Group, once touted as a “free speech” alternative to Silicon Valley, is now spending billions on Bitcoin as its own balance sheet collapses.
- Trump Media reported a loss of $54.8 million in the third quarter on revenue of less than $1 million.
- The company invested $2 billion in Bitcoin, which is currently trading well below its entry price.
- Truth Social does not show growth data, raising questions about its business model.
- Trump’s net worth is $7.3 billion, most of which is tied to cryptocurrencies and TMTG stock.
The company went public last year through a high-profile SPAC merger. reported It was another tough quarter, with losses of $54.8 million, nearly triple the year-ago period. Revenues barely dipped below $1 million, but legal costs alone exceeded $20 million. TMTG’s stock price fell more than 3% in after-hours trading on the news.
The numbers highlight how the company is caught between a political fan base and financial turmoil. There is still no data on Truth Social’s audience, no clear information about user growth, and no evidence that the platform is generating meaningful revenue.
A fundamental shift to Bitcoin
But the Trump media leadership appears to think they have found another way out by betting big on cryptocurrencies. The company poured about $2 billion into Bitcoin and related assets from July 1 to July 21, according to its quarterly report. I bought it when the price was hovering around $118,000 per coin.
That movement may already be under the surface. By early November, Bitcoin had fallen to around $103,000, wiping out hundreds of millions of dollars in paper value. The company also owns the Cronos (CRO) token through its August venture with Crypto.com and a blank check company, which has also fallen since September.
The initiative was introduced as a “financial diversification strategy” but now looks more like a desperate turn towards speculation. The company’s original mission of building a social network has been quietly sidelined, with no mention of new user milestones or platform upgrades in the latest report.
Trump’s growing wealth
Ironically, while President Trump’s company is in the red, his personal wealth is skyrocketing. Thanks to Trump Media and large holdings in various crypto assets, Forbes currently values his net worth at $7.3 billion, which has increased sharply since returning to the White House.
Approximately $6.6 billion of that is tied directly to cryptocurrencies and Trump Media stock, making him one of the richest sitting US presidents in history and ranked 201st on the Forbes 400 list.
Mr. Trump’s public comments have shown little concern about the company’s financial transparency. A September post on Truth Social even called for an end to quarterly financial reports, arguing that doing so would “save money and allow management to focus on running the company.”
leadership under pressure
Inside Trump Media, the flow of executive compensation has not stopped despite the heavy financial burden. CEO Devin Nunes, a former Republican congressman, received a $5.9 million stock award in August, weeks after the company posted a $20 million loss in the second quarter. The vesting period for the shares is three years, despite investors being wary of the company’s cash reserves.
The compensation package raises new questions about how much oversight the company actually has, especially since Trump remains the controlling shareholder with 114.75 million shares held through a revocable trust.
Ethical concerns and political flare-ups
Trump’s return to the Oval Office creates ethical gray areas, critics say, due to his overlapping roles as president, media owner and cryptocurrency investor. However, the administration dismissed such criticism.
In a statement to Forbes, White House press secretary Caroline Leavitt called the allegations an “irresponsible fabrication” and insisted that “neither the president nor his family has ever been involved in a conflict of interest and will never be involved in one.”
Meme stock without a map
What started as a populist tech strategy has turned into a volatile mashup of politics, cryptocurrencies, and speculation. For now, Trump Media is less a carrier than a market experiment powered by faith, followers, and economic risk-taking.
It remains to be seen whether the Bitcoin strategy can save it or sink further. But after another quarter of a deficit, one thing is clear. Trump’s media empire is betting its survival on the world’s most unpredictable asset.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any particular investment strategy or cryptocurrency. Always do your own research and consult a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over eight years of experience covering the crypto, blockchain and fintech industries, he is well-versed in the complex and evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and detailed content. Follow his publications to stay up to date on the most important trends and topics.