Trump Media posts a $238 million loss: crypto market volatility hits DJT again
Trump Media & Technology Group (DJT), the owner of the social network Truth Social, reported a net loss of $238.1 million for the second quarter of 2026. The key driver of the losses was the revaluation of digital assets and stocks held on the company's balance sheet.
According to my analysis of the financial statements, the gap between revenue and expenses narrowed compared to the first quarter, where the loss was $405.9 million. However, operating activities continue to remain deeply in the red: revenue for the reporting period barely reached $1.7 million, and the adjusted EBITDA figure went negative at $223.5 million. This is direct evidence that the company's business model is still far from sustainable.
Cryptocurrencies — the main source of "paper" losses
The greatest pressure on the financial result came from unrealized losses of $190.4 million. These are related to the impairment of collateral tokens and stocks that Trump Media holds on its balance sheet. Under accounting standards, the company is required to revalue assets at market value, and the decline in digital currency prices once again worked against it. This is the second consecutive quarter in which cryptocurrency market volatility has directly determined the bottom-line figures — in the previous reporting period, similar losses reached $368.7 million.
The market reaction was not long in coming. At the close of the trading session on August 10, DJT shares ended at $9.39, showing a decline of 8.03% relative to 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.
Strategy shift: from crypto to energy and data
Interim CEO Kevin McGern cites the upcoming merger with TAE Technologies — a company in the fusion energy sector — as the main factor for long-term 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 and secure infrastructure, now in energy security.
Notably, Trump Media is gradually moving away from its previous crypto projects. For example, the company scrapped the plan to place assets in CRO tokens through Crypto.com. Instead, on August 1, Truth API was launched — the first data licensing product. Since its release, more than 10 client agreements have been signed, although the launch has also sparked controversy over data pricing related to Truth Social.
My view: The situation around DJT is a vivid example of how public companies attempting to diversify their balance sheets with crypto assets become hostages to market conditions. The shift away from digital currencies toward energy and data licensing looks like a pragmatic step, but for now it is merely an attempt to restart the growth story. The question is whether the new strategy can generate real revenue rather than more "paper" losses.