Former President Donald Trump’s Truth Social network has reported losses of approximately $73 million since its inception nearly two years ago, as disclosed in a recent filing with the US Securities and Exchange Commission (SEC). The filing, submitted by Trump Media and Technology Group’s (TMTG) SPAC partner Digital World Acquisition Corp, revealed a $50 million loss in 2022 and an additional $23 million in the first half of 2023. Net sales for the entire period amounted to $3.7 million.
As per an article from The Hill, this marks the first public release of internal financial details for the social platform. The filing also indicated that TMTG’s financial condition raises concerns about its ability to continue as a going concern, and there are doubts about its capacity to meet liabilities as they fall due.
TMTG was initially valued at $875 million during the merger announcement with Digital World Acquisition Corp in late 2021, with Trump’s controlling stake now valued between $5 million and $25 million. The filing highlighted challenges in raising additional funds through traditional financing sources without material progress toward completing the merger.
Trump introduced Truth Social in late 2021 as a competitor to major tech platforms, positioning it against giants like Facebook and Twitter. Despite his high-profile struggles with established platforms, Truth Social has not yet proven profitable or garnered a significant following, with Trump boasting six million followers compared to almost 90 million on his reinstated Twitter account following Elon Musk’s takeover.
The SEC filing also includes a section titled “Risks Related to our Chairman President Donald J. Trump,” addressing ongoing legal challenges, bankruptcies of Trump-owned companies (such as his Atlantic City casino), and the closure of businesses licensed under his name (like Trump Vodka and Trump Shuttle).