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Donald Trump’s Truth Social craters to $300m loss amid market manipulation claims

Trump Media and Technology Group's primary asset Truth Social generated just $770,500 in sales over the quarter.(Photo by Clive Mason/Getty Images)
Trump Media and Technology Group's primary asset Truth Social generated just $770,500 in sales over the quarter.(Photo by Clive Mason/Getty Images)

Trump Media and Technology Group (TMTG), owner of Donald Trump’s social media platform Truth Social, reported losses of over $300m (£236m) in the first quarter of 2024.

The company of the former US president, who is running for a second term, posted a net loss of $327.6m (£257.6m) from January to March, a sharp increase from the $210,300 loss reported during the same period last year.

TMTG blamed most of the quarterly losses on non-cash expenses, which included clearing prior liabilities before its recent merger with Digital World Acquisition, a shell company, in late March.

Merger closing costs totalled over $6m (£5m) contributing to a first quarter operating loss of $12.1m (£9.5m), quadruple the operating loss from the same period last year.

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TMTG’s main asset Truth Social generated just $770,500 in sales over the quarter.

After TMGT’s Wall Street debut in March, the stock plummeted more than 70 per cent, slashing billions from Trump’s net worth. Since mid-April it has clawed back some gains.

Chief executive of the company Devin Nunes, a former Republican congressman, accused hedge funds of market manipulation to drive down the share price. On Monday, Nunes stated that the company remains “well-capitalized.”

“Our positive working capital allows us to explore and pursue a wide array of initiatives and innovations to build out the Truth Social platform, including potential mergers and acquisitions,” he said.

TMTG reported a $58m loss for 2023, despite its valuation soaring to more than $8bn upon its stock market debut.

Some analysts have compared TMTG to “meme stocks,” whose valuations are driven more by public enthusiasm than financial performance or business prospects. Its market capitalisation currently sits around $6.6bn.

Trump, who created his own social media platform following his bans from Twitter and Facebook in 2021, holds a 57.3 per cent stake in TMTG.