It’s not only legal challenges that threaten Donald Trump. Social Truth, the social network at the center, faces a precarious financial situation. An accounts report filed on Monday raises significant doubts about the platform’s sustainability due to mounting losses.
Since its launch in early 2022, the core business has been Trump Media & Technology Group, or TMTG. The social network has accumulated a net loss of 73 million dollars, with 50 million lost last year and an additional 23 million in the red during the first half of 2023.
According to an independent public accounting firm cited in the report, TMTG’s negative cash flows and ongoing losses cast doubt on the company’s ability to continue operating. The financial document outlining these findings was submitted by Digital World Acquisition Corp, which has been exploring a potential merger with the former president’s company since 2021. The merger faces ongoing funding challenges as traditional financing becomes harder to secure.
Leadership of Truth Social, chaired by former Republican congressman Devin Nunes, asserts that the platform could generate enough revenue to pay down existing debt and support ongoing operations if projected cash flows prove insufficient.
Alternative to Facebook and Twitter
The Republican leader launched the new platform to counter big tech on February 21, 2022. The platform previously drew attention after Facebook blocked his account for inciting followers to violently attack the Capitol in Washington, an action viewed by many as an attack on democratic norms.
Truth Social, with its appearance and operations resembling existing social networks, has become a digital space for conservatives and members of the far right. The platform has been used to share claims and theories challenging results of the 2020 presidential election, in which Joe Biden defeated Donald Trump.
Return to Twitter?
Since that period, Trump has posted primarily on Truth Social. The effort to monetize the platform remains a goal, yet the audience size pales in comparison with the former popular Twitter account. Truth Social has amassed a following far smaller than the counts seen on Twitter, where millions of users can be reached with a single message.
Economic interests surrounding Trump intersect with political ambitions. With another cycle of presidential elections on the horizon in the United States, there is ongoing discussion about the paths back to a broader online footprint. Twitter has experienced a notable revival under new ownership, with resumed activity that includes public statements seeking support for campaigns. The evolving social media landscape continues to influence how political figures engage with supporters and fund their activities, a dynamic closely watched by analysts and the public alike. This backdrop shapes how platforms, audiences, and fundraising strategies intersect in contemporary campaigns. Attribution notes: multiple industry analyses and market reports provide context to these developments.