Trump Media & Technology Group’s Financial Performance
Trump Media & Technology Group (TMTG), the parent company of Truth Social, reported a loss of $20 million in Q2. Despite this, TMTG’s shares enjoyed an uptick thanks to its substantial Bitcoin holdings. President Trump’s stake in the company is presently valued at $2 billion.
Impact on Stock Market
Typically a publicly traded company witnessing sales less than $1 million, coupled with a $20 million quarterly loss, might unsettle investors. However, this situation has surprisingly led to a small surge in TMTG’s stock prices.
TMTG’s Earnings Report
In its Q2 earnings report, TMTG revealed $883,300 in net sales, exhibiting a 5.5% increase from the previous year. However, the company witnessed a net loss of $19.7 million, in comparison to the $16.4 million loss in Q2 of 2024.
Stock Market Response
Despite the modest sales and considerable loss, TMTG’s stock rose by 1.5% in mid-morning trading on Monday, highlighting its cash-rich status largely due to its noteworthy Bitcoin holdings.
Significant Bitcoin Holdings
TMTG’s 10-Q filing with the Securities and Exchange Commission reveals financial assets approximately amounting to $3.1 billion, marking an 800% YoY growth. Out of this, $2.4 billion is invested in Bitcoin, which was acquired in July.
Benefits of Bitcoin Treasury Strategy
According to TMTG, the Bitcoin treasury strategy provides its investors with indirect exposure to cryptocurrencies, generates investment income, positions the company for expansion, and reinforces the company’s financial freedom, including protection against debanking and political discrimination.
Trump’s Stake in TMTG
Trump owns 114.75 million of the company’s outstanding shares through a revocable trust, which constitutes 52% of the company’s total outstanding shares, as per the company’s 2025 proxy statement. As of Monday morning, this stake was worth $2 billion, a considerable decline from the $4 billion on January 1. Year to date, shares of TMTG have fallen by 50%.
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