Trump Media recorded a loss of $238 million: cryptocurrencies and stocks hit the balance sheet again
The second quarter of 2026 proved to be a period of significant financial losses for Trump Media & Technology Group (DJT). The company's net loss amounted to $238.1 million, with volatility in digital assets and the stock market being the main driver of this setback.
The gap between revenue and expenses for the owner of Truth Social narrowed compared to the first quarter, where the loss reached $405.9 million. However, the operational picture remains concerning: revenue for the reporting period totaled just $1.7 million, while the adjusted EBITDA figure went negative at $223.5 million. This signals that the company's business model is still far from sustainable.
Cryptocurrencies as the main source of losses
The key factor determining the result was unrealized losses of $190.4 million. These are related to the revaluation of digital assets, securities, and tokens held on the company's balance sheet. Under accounting standards, when the market value of such assets declines, the company is required to reflect this in its reporting, which is what happened. In the previous quarter, similar losses reached $368.7 million, highlighting a systemic problem: dependence on high-risk instruments.
The market reaction was swift. On August 10, trading closed at $9.39, which is 8.03% below the previous close ($10.21). In after-hours trading, quotes fell another 0.53% to $9.34. Investors are clearly disappointed by the lack of progress in key areas.
Strategic pivot: from crypto 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, Trump Media is gradually moving away from its former crypto ambitions. For example, the company scrapped plans to place assets in CRO tokens through Crypto.com. Instead, Truth API was launched — the first data licensing product, released on August 1. Since its launch, more than 10 client agreements have been signed, although the rollout has also sparked controversy over data pricing related to Truth Social.
My analysis: Moving away from cryptocurrencies looks like a reasonable step, given that they caused two consecutive quarters of losses. However, betting on the merger with TAE Technologies is a long-term play, and it remains unclear whether the company can generate real profits. For investors, DJT remains a high-risk asset where fundamental metrics take a back seat to speculative expectations.