Trump Media reported a loss of $238 million: cryptocurrencies and stocks once again hit the balance sheet
Trump Media & Technology Group (DJT), the parent company of Truth Social, reported a net loss of $238.1 million for the second quarter of 2026. The main blow to financial performance came from the revaluation of digital assets and equity instruments held on the company's balance sheet.
The gap between revenue and expenses narrowed compared to the first quarter, when the loss reached $405.9 million. However, the operational picture remains concerning: revenue amounted to only $1.7 million, and adjusted EBITDA went negative at $223.5 million. It is clear that the business continues to exist in a holding pattern rather than active monetization.
Cryptocurrencies — the main source of losses
The key factor behind the loss was unrealized losses of $190.4 million related to the impairment of pledged tokens and shares. Under accounting rules, the company is required to reflect the decline in the book value of assets when their market quotes fall. This time, cryptocurrencies were the main driver of the negative trend.
This is the second consecutive quarter in which the volatility of digital assets has directly determined the financial result. In the previous reporting period, similar losses reached $368.7 million. The situation clearly demonstrates how risky it is to hold highly volatile instruments on the balance sheet without proper hedging.
The market reaction was swift. At the close of the trading session on August 10, DJT shares ended at $9.39, down 8.03% from the previous close ($10.21). In after-hours trading, quotes slipped another 0.53% to $9.34, indicating continued pressure from investors.
Strategy shift: from crypto projects to energy
Interim CEO Kevin McGern cited the upcoming merger with TAE Technologies, a company in the fusion energy sector, as the main driver of business value growth. 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 in the area of energy security.
Notably, the company is gradually moving away from its previous crypto initiatives. In particular, the plan to place assets in CRO tokens via Crypto.com was scrapped. Instead, Trump Media launched Truth API — its first data licensing product, which went live on August 1. More than 10 client agreements have already been signed, although the launch has sparked debate over pricing for data related to Truth Social.
My view: Moving away from crypto exposure looks like a belated but correct step. As long as the company is not generating meaningful operating revenue, any investments in volatile assets only amplify financial instability. The merger with TAE Technologies could be a turning point, but investors should remain cautious: until the deal closes, DJT shares remain extremely sensitive to the news flow.