Trump’s Truth Social Platform Bleeds Cash, Filing Reveals

A new regulatory filing reveals steep financial losses for former President Donald Trump’s social media venture, Truth Social — casting doubt on the future viability of the platform.

According to a Tuesday Prolific North report, a recent filing with the Securities and Exchange Commission by partner company Digital World Acquisition Corp, Trump Media and Technology Group has lost $73 million since launching Truth Social in February 2022. Total net sales amounted to just $3.7 million over this period, highlighting the platform’s struggles to attract a sustainable audience and profit from its operations.

The filing marks the first time internal financial details of the privately held TMTG have been shared publicly.

The Trump Media venture had ambitious plans to take on Big Tech and attract millions of disaffected conservatives when it was first announced in October 2021. TMTG was valued at a lofty $875 million at the time, though Trump’s personal stake amounted to just $5-25 million, according to the latest figures.

However, the platform has struggled to build an audience, with Trump currently boasting just over four million followers — a far cry from the nearly 90 million he had on Twitter when he was banned following Jan. 6. Industry experts say the lackluster growth shows limited demand for a “MAGA-only” social network, even among Trump’s core supporters. Combined with the reported cash burn, Truth Social’s future remains highly uncertain.

TMTG hopes to raise fresh funds by completing a merger with Digital World, a special-purpose acquisition company, but that deal has been delayed repeatedly amid SEC investigations. In September, Digital World shareholders approved a 12-month extension to complete the transaction, avoiding a liquidation deadline that would have dissolved the partnership and returned $300 million to shareholders.

Still, the path ahead looks rocky for the troubled social media upstart. The SEC filing even included a section outlining substantial risks related to TMTG’s association with Trump, from his legal entanglements to the bankruptcies of his past-branded companies.

For now, the Truth Social platform continues to operate and provide an online space for Trump supporters — but whether it can defy the odds and achieve sustainable growth remains a big open question.

Originally published on ReadWrite by Radek Zielinski.