Original Title: (TMTG under Trump: Q2 Loss of $20 million, transforms into the sixth largest BTC holding giant)
Original Author: Ding Dong, Odaily Planet Daily
Trump Media & Technology Group (TMTG) recently released its Q2 2025 financial report, showing a net loss of $20 million, of which about $15 million was related to legal fees associated with the merger with a special purpose acquisition company (SPAC). As a result, the company's stock price fell by 3.8%.
However, behind this seemingly pressured financial report lies a hidden mystery: TMTG is quietly pushing a crucial strategic transformation—from a social media platform to a high-risk, high-leverage crypto financial technology company, with Bitcoin and crypto financial business as its core weapon.
Starting from a social platform: TMTG's political DNA and traffic starting point
TMTG was founded by U.S. President Donald Trump in February 2021 and is headquartered in Sarasota, Florida, positioned as a 'free expression' platform against content censorship by large tech companies. Its core product, Truth Social, was born against the backdrop of the January 6 incident and Trump's bans from Facebook and Twitter, aiming to create a public opinion platform away from mainstream platforms, with conservative users as its core audience. Previously, Trump attempted to launch a personal website, but it was closed after just a month.
In October 2021, TMTG went public through a merger with the special purpose acquisition company (SPAC) Digital World Acquisition Corp (DWAC), with the stock code DJT. Trump is the largest shareholder of TMTG, and in December 2024, he will transfer approximately 115 million shares (valued at about $4 billion) to a trust controlled by his eldest son Donald J. Trump Jr., without selling the shares or receiving any consideration, referred to as a 'gift'. This equity arrangement further strengthens TMTG's binding with the 'Trump brand'. Trump has also stated that he will not leave Truth Social and will not sell his shares in Trump Media Group.
However, TMTG has not stopped at social networks. Backed by Trump's political capital and media presence, the company is gradually building a diverse ecosystem around content, finance, and technology. From the streaming platform Truth+ (which focuses on family-friendly and Christian content), to planned crypto payments and utility token mechanisms, and the financial technology and asset management business driven by Truth.Fi, this startup media company is attempting to blur the boundaries between 'media' and 'tech finance', telling a higher multiplication growth story to the capital market.
TMTG's diversified layout is closely related to the political influence of its founder, Trump. Truth Social is not only a social platform but also an extension of Trump's brand effect. However, its user base is relatively niche, its profit model is not yet mature, and the growth strategy relying on Trump's personal reputation carries uncertainties. The layout in crypto and streaming aims to break through in high-growth areas.
Q2 Financial Report Interpretation: Bitcoin Strategy Drives Asset Surge
Despite significant losses, one data point in the Q2 financial report stands out: As of June 30, 2025, TMTG's financial assets have soared to $3.1 billion, an annual increase of nearly 800%. The primary reason is the comprehensive advancement of its Bitcoin strategy. The company raised $2.4 billion in special funds for crypto asset allocation and held about $2 billion in Bitcoin assets in July, making it the sixth largest public company in Bitcoin holdings globally.
It is worth noting that despite the rapid growth of assets, TMTG's core revenue has consistently been weak. According to public information:
· In 2023, the company's revenue is $4.1 million, and losses are $325 million.
· Revenue in 2024 drops to $3.6 million, losses expand to $400.9 million.
The enormous losses over the past two years reflect significant challenges TMTG faces in its business model, user growth, and monetization capabilities. Although it has traffic attraction due to Trump's personal brand, TMTG's advertising revenue is far inferior to mature social platforms like X (formerly Twitter), making it difficult to attract stable advertisers and long-term investors.
To some extent, TMTG is attempting to use the 'financial engine' of high volatility in crypto assets to compensate for the sluggish growth of its core business.
In June 2025, TMTG submitted a registration to the SEC, planning to issue over 84.65 million shares of common stock, with a valuation as high as $12 billion, demonstrating strong ambitions for capital operations. According to reports from the Financial Times, TMTG once planned to raise $3 billion through the issuance of stocks and convertible bonds to increase its crypto allocation. Although officially denied, the $2.44 billion financing and ETF registration completed at the end of May provide a realistic footnote for this strategy.
Currently, TMTG has submitted registration documents for several ETF products to the SEC, including Truth Social Crypto Blue Chip ETF, Truth Social Bitcoin and Ethereum ETF, and Truth Social Bitcoin ETF, signaling a financial productization offensive led by political figures is gaining momentum.
Market Valuation: Cautious Premium and Market Differentiation
As the valuation logic of 'Bitcoin treasury companies' like MicroStrategy and Semler Scientific is gradually accepted by the market, TMTG's valuation as a 'political crypto hybrid' has also drawn attention. NYDIG's global research director Greg Cipolaro pointed out in a report on June 6 that the 'equity premium to net asset value (NAV)' for TMTG (DJT) and Semler Scientific (SMLR) was the lowest, at -16% and -10%, respectively. When Bitcoin prices rose to $108,500 in June, MicroStrategy's stock price increased by nearly 5%, while TMTG and SMLR's stock prices remained nearly unchanged.
The market clearly has not yet formed sufficient confidence in TMTG's crypto strategy, which is influenced by concerns over uncertainties in its early exploration phase and an avoidance of its political risk exposure. In today's highly financialized crypto market, whether TMTG, as a highly politicized participant, can break free from the shadow of 'Trump concept stocks' and win value recognition based on financials and assets remains a significant question.
The two sides of offense and defense in the crypto field: Comprehensive penetration from ETFs to mergers and acquisitions
In addition to the Bitcoin treasury strategy, TMTG's offensive in the crypto ecosystem is increasingly multi-faceted. The company recently signed a non-binding agreement with Crypto.com to launch a series of ETFs covering digital assets and securities in the U.S., with the first products expected to cover mainstream assets like BTC, ETH, SOL, XRP, and plans to expand into European and Asian markets in the future, with Crypto.com providing underlying infrastructure and custody services.
Meanwhile, TMTG is negotiating acquisition matters with the crypto trading platform Bakkt. Bakkt was incubated by the Intercontinental Exchange, and its former CEO Kelly Loeffler is now co-chair of Trump's inauguration committee, giving this potential deal a strong political hue. After the trading news broke, Bakkt's stock price soared over 162% in a single day, and TMTG's stock price also rose significantly.
In addition, TMTG's executive team has established a new SPAC company, Renatus Tactical Acquisition Corp I, planning to raise $179 million through IPO and private placements for mergers and acquisitions of companies in the fields of cryptocurrency, blockchain, secure computing, and dual-use technologies. Its CEO is currently TMTG board member Eric Swider, and the board chairman is TMTG's current CEO Devin Nunes, with COO Alexander Cano also having a TMTG background. The leadership of Renatus Tactical overlaps significantly with TMTG, which may possess certain strategic synergies. It is worth noting that the Trump administration's appointments to regulatory agencies such as the SEC and the Justice Department may impact the review of such mergers.
Currently, TMTG is attempting to break away from the single trajectory of traditional media companies, no longer satisfied with relying on social platforms for traffic monetization, but instead trying to convert the political momentum carried by the 'Trump' brand into capital leverage in the crypto financial market. By increasing Bitcoin holdings, laying out ETF products, and engaging in blockchain and asset management, TMTG is deeply embedding itself into the high-volatility track at the intersection of technology and finance. As the narrative around crypto becomes increasingly 'institutionalized' and 'corporatized', this highly politicized hybrid is also contending for its own share of the dividends.
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