Trump Media reported a loss of $238 million: cryptocurrencies and stocks again crushed the balance sheet
Trump Media & Technology Group (DJT) reported a net loss of $238.1 million for the second quarter of fiscal year 2026. The main blow to its financial results came from the revaluation of digital assets and equity instruments — the company was forced to record significant paper losses.
The gap between revenue and expenses for the owner of Truth Social narrowed compared to the first quarter, when the loss reached $405.9 million. However, the operational picture remains concerning: revenue totaled just $1.7 million, while adjusted EBITDA fell to negative $223.5 million. Clearly, the business continues to rely on external financing rather than generating profit.
Cryptocurrencies — the main source of losses
The key driver of the loss was $190.4 million in unrealized losses related to the impairment of tokens and stocks held on the company's balance sheet. Under accounting standards, Trump Media is required to revalue assets at market value, and declines in digital currency prices are immediately reflected in its reports. This is the second consecutive quarter in which cryptocurrency market volatility has directly impacted financial results: in the previous reporting period, similar losses reached $368.7 million.
The market reaction was swift. On August 10, trading closed at $9.39, down 8.03% from the previous close of $10.21. In after-hours trading, shares slipped another 0.53% to $9.34. Investors are clearly disappointed by the lack of progress in core operations.
Strategy shift: from crypto projects to energy and data
Interim CEO Kevin McGern cited the upcoming merger with TAE Technologies — a company in the fusion energy sector — as the main growth driver. The deal is expected to close in the fourth quarter. According to him, this is a logical continuation of the strategy to build sustainable infrastructure, now focused on energy security.
Notably, Trump Media is gradually stepping back from its previous crypto initiatives. For example, the company scrapped plans to allocate assets into CRO tokens via Crypto.com. Instead, the focus has shifted to data licensing: on August 1, the Truth API product was launched, which has already attracted more than 10 client agreements. However, the launch sparked controversy over pricing for access to Truth Social data.
My take: The current situation highlights a fundamental problem for Trump Media — dependence on speculative assets without a sustainable business model. The pivot to energy and data may be an attempt at diversification, but investors should approach these steps with caution: until the company shows real operating profit, any positive news will only provide temporary support for the stock.