Amid market gyrations of the company behind Truth Social, former President Donald Trump insists its fundamentals are ’very solid’ and its future bright.
Former President Donald Trump said Thursday that media fixation on the $58 million loss of the company behind Truth Social is misguided, touting its fundamentals—which he said include over $200 million cash and no debt—as “very solid.”
President Trump took to Truth Social on April 4 to say that the platform’s performance is “amazing” and its fundamentals are “very solid,” with over $200 million in cash and “zero debt.”
Official first-quarter financial information for Trump Media & Technology Group, the parent company of Truth Social, isn’t available yet.
“Very good for a startup, and growing fast,” President Trump said in a follow-up message, while touting the platform’s growing popularity.
The 45th president’s remarks come after a turbulent week for Trump Media, which went public last week after finalizing its long-awaited merger with Digital World Acquisition Corp. (DWAC), a special purpose acquisition company.
Market Interest Explodes, Then Cools
Following the merger and initial public offering (IPO) last week, market interest exploded in Trump Media, which trades under the ticker symbol DJT. Its stock price soared above $79 per share on its first day of trading, sending the company’s market cap to over $7 billion.
This meant that President Trump, who owns around 57 percent of the combined company, on paper became over $4 billion richer, though a lock-in arrangement prevents him from selling his shares for six months.
After the initial surge of interest, Trump Media shares pulled back to around the $62 mark, where they traded until news broke on April 1 that, in 2023, the company suffered a $58 billion loss.
Word of the loss sent Trump Media shares plunging by roughly 20 percent to around the $45 mark, a price around which it’s traded sideways until today, at a market cap of around $6.3 billion.
Much of the loss appears to be related to an interest expense of $39.4 million on its outstanding debt, according to the 8-K filing. In 2022, the company made a net profit of $50.5 million.
By Tom Ozimek
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