Trump Media stock slides as firm reports $20 million quarterly loss, teases 'utility token'
Quick Take The stock price of Trump Media & Technology Group, the Truth Social parent and bitcoin treasury company majority-owned by the President, slid 3.8% after the firm announced a $20 million loss in Q2. Trump Media accumulated $2 billion worth of bitcoin in July. Trump Media also announced plans for a rewards program that will include a utility token that can be used in the “Truth ecosphere.”
Trump Media & Technology Group, the parent company of social media site Truth Social which is actively pursuing a bitcoin treasury strategy, saw its shares slide nearly 4% on Friday after announcing its Q2 earnings.
Trump Media, which is majority-owned by U.S. President Donald Trump, reported a net loss of $20 million on the quarter, attributing approximately $15 million to legal fees related to its SPAC merger in 2024. Trump Media is suing its SPAC sponsor and two Truth Social co-founders, alleging improper acts that stretched the merger to 29 months, longer than typical reverse takeovers.
Trump Media's stock, which trades on the Nasdaq stock exchange, slid 3.8% on Friday following the release of the earnings, according to Yahoo Finance data . The company is currently trading at a market capitalization of about $4.7 billion.
Trump Media reported assets of $3.1 billion at the end of the quarter, which was supercharged by its bitcoin buys in July . The company currently boasts the fifth-largest bitcoin treasury of any public company, according to The Block's data.
Truth token tease
In its SEC filing , Trump Media said that subscribers to its recently-announced Patriot Package, currently in beta testing, will "accumulate gems, which will eventually be tied to a utility token on both Truth Social and [streaming service] Truth+. " The utility token "can initially be used to pay for Truth+ subscription costs, and later be applied to other products and services in the Truth ecosphere," the company said.
Trump Media's filings do not explicitly state whether the token will rely on blockchain technology. The Block could not immediately reach Trump Media for comment.
Trump Media also said it was moving forward with its plans to offer digital asset ETFs; the SEC recently said it was pushing back its decision until Sept. 18, The Block previously reported .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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