Former President Donald Trump’s publicly traded company, Trump Media and Technology Group, is facing doubts about its ability to stay in business, as revealed in a recent regulatory filing. The company, which operates the Truth Social platform, reported a loss of $58.2 million in 2023, with total revenues of $4.1 million. Its largest expense for the year was interest payments totaling over $39 million.
An independent accounting firm, BF Borgers CPA PC, issued a note warning that Trump Media’s operating losses raise doubts about its ability to continue as a going concern. The company’s stock, which started trading on the Nasdaq under the symbol DJT, initially surged but fell more than 21% to $48.66 on Monday, with a market value of over $6.5 billion.
Despite the financial challenges, Trump Media remains optimistic about its future. CEO and former U.S. Rep. Devin Nunes stated in a news release that the company has no debt and over $200 million in the bank, allowing for opportunities to expand and enhance the Truth Social platform. However, the company acknowledged that it expects to operate at a loss for the foreseeable future as it works to grow its user base and attract advertisers.
Analysts have raised concerns about the company’s future, particularly in light of Trump’s ownership stake. Trump’s paper net worth from the company is around $7 billion, but he is barred from selling his shares for six months. Analysts predict that the value of the company could plummet if Trump were to sell his shares, leading to potential volatility in the stock as his legal and political fortunes evolve.