Donald Trump’s Truth Social burns millions according to regulatory filing

A recent regulatory filing has disclosed that Truth Social, Donald Trump's social media platform, has incurred significant financial losses since its launch. Digital World Acquisition Corp, the special purpose acquisition company intending to merge with Truth Social's parent firm, Trump Media & Technology Group (TMTG), has revealed the social media platform's financial numbers in an SEC filing.

According to the filing, Truth Social has lost US$73 million since its inception, casting doubt on its ability to continue operations. The filing indicates that Truth Social lost US$50 million in 2022 and another US$23 million in the first half of 2023.

Since its launch, Truth Social and TMTG have collectively earned US$3.7 million in net sales but have incurred substantial losses. 

This marks the first time that financial details of Truth Social have been made public. The figures indicate that despite Trump's heavy promotion of the platform, it has failed to generate substantial revenue for its parent company, TMTG.

These financial difficulties are compounded by a complex balance sheet resulting from a "change in fair value of derivative liabilities" unrelated to the company's daily operations. The filing highlights the challenges faced by Truth Social in establishing itself as a viable competitor in the social media landscape.

Trump's initial announcement of Truth Social in late 2021 positioned it as an alternative to major tech platforms like Facebook and Twitter. In May 2022, Trump further committed to Truth Social by agreeing to use it as his primary social media platform, refraining from posting on other platforms until six hours after posting on Truth Social.

The Truth Social app is available on the Apple App Store. Buy the iPhone 14 Pro on Amazon.