Former President Donald Trump’s Truth Social, the platform launched in response to his Twitter ban, has revealed significant financial setbacks, with an accumulated loss of $31.6 million, according to a filing from the U.S. Securities and Exchange Commission.**
In the filing released by special acquisition company Digital World Acquisition Corp, set to merge with Truth Social’s owner, Trump Media & Technology (TMTG), the platform’s financial struggles are laid bare. While Truth Social boasted a profit of $50.5 million in 2022, the first six months of 2023 saw a notable downturn, resulting in a net loss of nearly $23 million.
As of June 30, 2023, the accumulated loss reached $31.6 million, prompting concerns about TMTG’s ability to meet its impending liabilities. The filing explicitly notes “substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due,” including those linked to previously issued promissory notes by TMTG.
“TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World,” the filing adds.
Truth Social, initiated in the first quarter of 2022 after TMTG commenced operations in February 2021, was introduced by Trump as a free speech haven and an alternative to major tech platforms like Twitter and Facebook. However, recent financial disclosures raise questions about the platform’s sustainability.
In response to the filing, a TMTG spokesperson referenced a Truth Social post, accusing the “Fake News” of neglecting the filing’s significance and asserting it as a “crucial milestone toward completing our proposed merger.”
NBC News reached out to Trump’s 2024 presidential campaign for comment on the financial disclosure, but no response has been received at the time of this report.
Former President Trump, banned from Twitter following the January 6 insurrection at the U.S. Capitol, has been actively using Truth Social to reiterate his controversial language from his Twitter days. Recent posts on the platform include attacks on prosecutors involved in his federal criminal charges.
