Trump Media reported a loss of $238 million: cryptocurrencies once again let down the owner of Truth Social
Trump Media & Technology Group (DJT) financial results for the second quarter of 2026 came under pressure from digital asset volatility. The company's net loss totaled $238.1 million, with the bulk of these losses stemming from the revaluation of cryptocurrencies and stocks held on its 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 challenging: revenue for the reporting period amounted to just $1.7 million, while adjusted EBITDA went negative at $223.5 million. This underscores that the core business — the social platform Truth Social — is not yet generating sustainable cash flow.
Cryptocurrencies as a Source of Losses
The key driver of the loss was unrealized losses of $190.4 million on digital assets pledged as collateral, as well as on tokens and stocks on the balance sheet. Under accounting standards, the company is required to write down the carrying value of assets when their market price declines. In the second quarter, cryptocurrencies were the main driver of the negative revaluation, repeating the situation from the first quarter, when 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 ($10.21). In after-hours trading, quotes slipped another 0.53% to $9.34. Investors are clearly disappointed by the lack of progress in monetization.
New Strategy: Fusion Energy and Data
Interim CEO Kevin McGern sees the future not in cryptocurrencies, but in the merger deal with TAE Technologies — a company in the fusion energy sector. The deal is expected to close in the fourth quarter. According to him, this is a key factor for long-term value growth for shareholders and a logical continuation of the strategy to build sustainable infrastructure in the field of energy security.
In parallel, the company launched Truth API — its first data licensing product, released on August 1. Since launch, more than 10 client agreements have been signed, although the pricing policy has sparked debate in the market.
My view: Moving away from cryptocurrency experiments is a belated but correct decision for Trump Media. However, until the company shows real revenue from new areas, such as data licensing or energy projects, the stock will remain hostage to the news cycle rather than fundamental metrics. The merger with TAE is an ambitious step, but it carries high execution risks and does not guarantee a quick recovery in market capitalization.