Trump Media posts $238 million loss: cryptocurrencies and stocks disappoint Truth Social again
Trump Media & Technology Group (DJT) 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 crypto assets and stocks — the company recorded significant paper losses amid market volatility.
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. Nevertheless, operating activities remain unprofitable: revenue amounted to only $1.7 million, and adjusted EBITDA went negative at $223.5 million. This confirms that the company's core business model is not yet generating sustainable profit.
Cryptocurrencies — the main source of losses
The biggest impact on the report came from unrealized losses of $190.4 million related to digital assets, collateral tokens, and stocks on the company's balance sheet. Under accounting standards, Trump Media is required to reduce the carrying value of assets when their market price falls. This time, cryptocurrencies became the key driver of the negative trend.
This is the second consecutive quarter in which volatility in digital assets has determined the company's financial results. In the previous reporting period, similar losses reached $368.7 million, indicating a systemic risk management problem.
The market reaction was swift: on August 10, the trading session closed at $9.39, 8.03% below the previous close ($10.21). In after-hours trading, quotes continued to decline by another 0.53%, reaching $9.34.
New strategy: from crypto to energy
Interim CEO Kevin McGern called the upcoming merger with TAE Technologies — a company in the fusion energy sector — the main source of business value growth. The deal is expected to close in the fourth quarter.
The new development vector comes at a time when Trump Media is moving away from its previous crypto projects. For example, the company scrapped plans to place assets in CRO tokens through Crypto.com.
"We have truly advanced toward the planned merger with TAE Technologies. We believe this is a key factor for long-term growth for shareholders and a logical continuation of the strategy — to build sustainable, cancellation-proof infrastructure, now in the field of energy security," he stated.
In parallel, the company launched Truth API — its first data licensing product — on August 1. Since the release, more than 10 client agreements have been signed. The launch drew attention due to controversial issues regarding data pricing related to Truth Social.
My view: the shift from speculative crypto assets to the energy sector is an attempt to stabilize the business, but the merger with TAE carries high risks and does not guarantee a quick improvement in financial performance. Investors should closely monitor the details of the deal and the company's ability to generate real revenue rather than paper losses.