Former President Donald Trump’s social media company Truth Social lost over $58 million in 2023, on revenue of only $4.1 million, according to new SEC filings.
As a result, Trump Media & Technology Group, the newly formed company which controls Truth Social, saw shares plummet over 25% in midday trading on Monday.
Donald Trump, who is positioned to become the Republican nominee for the 2024 presidential election, is the company’s majority shareholder. Trump holds about a 60% stake in Truth Social, or about 79 million shares of the public company’s 125 million.
The filing also warns shareholders that Trump’s involvement and stake in the company could put it at greater risk of volatility than other social media companies.
The whole of the media company’s revenue comes from advertising on the social media platform, according to the disclosures.
The media company’s share price skyrocketed when the stock began trading on Tuesday, days after the firm merged with SPAC, Digital World Acquisition Corp. The newly merged company trades under the former president’s initials DJT.
This comes as Trump has faced massive legal bills as he defends himself against dozens of criminal and civil charges. A judge in New York recently lowered the sum of his bond in a civil fraud case to $175 million.
Trump Media & Technology Group shareholders, including the former president himself, are subject to a six-month lockup period, preventing any sales of shares during that time, according to the SEC filing.
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