Shares of former US president Donald Trump’s social network ‘Truth Social’ dropped drastically on Monday, April 1 after the company disclosed that it lost more than $58 million and generated very little revenue in 2023.
Trump is the company’s majority shareholder, and his net worth tumbled by more than $1 billion as a result.
In a regulatory filing on Monday, Trump Media said it lost $58.2 million in 2023, compared with a profit of $50.5 million in 2022.
The Truth Social owner generated just $4.1 million in revenue, although that was up from $1.5 million in 2022.
Also, shares of Trump Media tumbled 21% Monday following the new filings, though they are still up nearly 200% so far this year.
Trump owns a commanding stake of 78.8 million shares in the newly public company. At Monday afternoon’s prices, that stake is now worth approximately about $3.8 billion. This represents a massive boost to Trump’s net worth, though it is down significantly from a peak of about $6.3 billion just last week.
The losses disclosed Monday are so severe that Trump Media’s accountants warned at the time they “raise substantial doubt about its ability to continue as a going concern,”
That merger deal was completed last week, paving the way for Trump Media to receive approximately $300 million influx of cash. The company can now use those funds to pay down debt and, importantly, build out its infrastructure.
