Hiltzik: Trump Media's financial report revives doubts for investors

Core Viewpoint - TMTG's evaluation should focus on its business plan and innovation rather than traditional performance metrics, as its brand value is closely tied to the popularity of President Donald J. Trump [1][5]. Financial Performance - Trump Media reported a loss of $712.1 million on revenue of approximately $3.7 million for the last year, a decline from a loss of $409 million on revenue of about $3.6 million in 2024 [4]. - The company has engaged in complex financial transactions, including a plan to raise $3.5 billion to invest in bitcoin [8]. User Base and Market Position - Truth Social has an estimated 2 million active users, significantly lower than competitors like X with 450 million and Facebook with over 2.9 billion [2]. - The platform primarily serves as a channel for Trump's social media content, which is often disseminated through other media outlets [3]. Cryptocurrency Ventures - TMTG has formed a partnership with Crypto.com to pursue a crypto treasury strategy, initially involving 6.4 billion Cronos tokens valued at $1 billion [10]. - As of the end of the year, TMTG owned 756.1 million Cronos, acquired at a cost of about $114 million, but the value had declined significantly, resulting in a paper loss of approximately $56.5 million [10]. Future Plans and Mergers - TMTG plans to merge with TAE Technologies, a company focused on nuclear fusion, contributing $200 million to the merged entity [18]. - Following the merger, TMTG may consider spinning off Truth Social into a new publicly traded company, raising questions about the coherence of its business strategy [18][22]. Strategic Direction - TMTG's original mission was to create an alternative social media platform, but its current trajectory includes diverse investments in crypto and fusion technology, which may not align with its initial goals [22].