Key Points:
- Trump Media’s board approved investments in cryptocurrency as part of its financial services expansion.
- The company reported a $401 million loss in 2023, with revenue dropping 12% to $3.6 million and an accumulated deficit reaching $2.9 billion.
Trump Media & Technology Group has received board authorization to invest in cryptocurrency assets, marking a new strategic direction for the company behind Truth Social.
Read more: Trump Media and Technology Group Set to Launch America-Focused ETFs and Bitcoin Fund
Trump Media Invests in Cryptocurrency Amid Expansion Plans
Trump Media plans to allocate up to $250 million from its $700 million cash reserves into Bitcoin, crypto-focused securities, and exchange-traded funds (ETFs).
The decision comes as Trump Media continues to navigate financial difficulties and aims to diversify its holdings. Previously, the company announced its expansion into financial services, including crypto investments.
Trump Media was created through a blank-check merger in March and remains largely controlled by President Donald J. Trump, whose stake is managed in a trust overseen by his son, Donald Trump Jr.
Company Faces Mounting Losses and Declining Revenue
Despite struggling to establish Truth Social as a major competitor to platforms like Meta’s Facebook and Instagram or Elon Musk’s X, Trump Media has benefited from its status as a “meme stock.” The designation has helped it raise substantial funds since going public last year.
Financial filing revealed that the company ended 2024 with just 29 full-time employees. Revenue declined by over 12% to $3.6 million, while its net loss surged to $401 million, significantly increasing its accumulated deficit to $2.9 billion.
Operating activities used up $61 million in cash, with a major portion of the net loss attributed to changes in derivative liabilities. Additionally, the company distributed more than $107 million in stock to employees despite declining revenue.
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