Truth Social, the social media company of former President Donald Trump, experienced a loss of over $58 million in 2023, with a revenue of only $4.1 million, as per new SEC documents.
As a result, Trump Media & Technology Group, which controls Truth Social, saw its shares fall by more than 25% in trading on Monday.
Donald Trump, who is likely to be the Republican nominee for the 2024 presidential election, owns the majority of the company. His stake is around 60% in Truth Social, which equals about 79 million shares out of the total 125 million shares. Truth Social
The filing also cautions shareholders that Trump’s involvement and stake in the company could make it more unstable compared to other social media companies.
The company generates all its revenue from advertising on the social media platform, according to the disclosures.
The company's share price surged after it started trading, following the merger with SPAC, Digital World Acquisition Corp. The merged company now trades under the former president’s initials DJT.
This happens as Trump deals with substantial legal expenses to defend himself against numerous criminal and civil charges. In a civil fraud case in New York, a judge recently reduced his bond amount to $175 million.
Shareholders of Trump Media & Technology Group, including the former president, are under a six-month lockup period, which prohibits any share sales during that time, according to the SEC filing.
