Original Article Title: "Trump's TMTG: Q2 Loss of $20 Million, Transforms into Sixth-Largest BTC Holder"

Original Article Author: Dangdang, Odaily Planet Daily

The Trump Media & Technology Group (TMTG) recently released its 2025 Q2 financial report, showing a net loss of $20 million, with about $15 million attributed to legal expenses related to its Special Purpose Acquisition Company (SPAC) merger. As a result, the company's stock price fell by 3.8%.

However, behind this seemingly pressured financial report lies a hidden agenda: TMTG is quietly driving a strategic transformation—shifting from a social media platform to a high-risk, high-leverage crypto fintech company, with its core weapon being Bitcoin and crypto financial services.

From Social Platform to Finance: TMTG's Political DNA and Traffic Starting Point

TMTG was founded by former U.S. President Donald Trump in February 2021, headquartered in Sarasota, Florida, positioning itself as a "free expression" platform to combat content censorship by large tech companies. Its core product, Truth Social, was born in 2021 following the U.S. Capitol incident, as Trump was banned from Facebook and Twitter. Targeting conservative users, it aimed to create an opinion stronghold outside mainstream platforms. Prior to this, Trump had tried launching a personal website, which closed after just one 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 ticker symbol DJT. Trump is the largest shareholder of TMTG. In December 2024, he transferred around 115 million shares (worth about $4 billion) to a trust fund controlled by his son, Donald J. Trump Jr., with no sale of shares or consideration, described as a "gift." This equity arrangement further strengthens the link between TMTG and the "Trump brand." Trump has also stated that he will not leave Truth Social or sell his stake in the Trump Media Group.

However, TMTG did not stop at just a social network. Leveraging Trump's political capital and media presence, the company has gradually built a diverse ecosystem around content, finance, and technology. From the streaming platform Truth+ (focused on family-friendly and Christian content) to planned crypto payments and utility token mechanisms, to the fintech and asset management business propelled by Truth.Fi, this startup media company is attempting to blur the boundaries between "media" and "fintech," presenting a high-growth narrative to the capital markets.

The diversification of TMTG is closely tied to its founder Trump's political influence. Truth Social is not only a social platform but also an extension of the Trump brand effect. However, its user base is relatively niche, the profit model is not yet mature, and the growth strategy relying on Trump's personal reputation poses uncertainties. The foray into crypto and streaming attempts to break through in high-growth areas.

Q2 Financial Report Analysis: Bitcoin Strategy Drives Asset Surge

Despite heavy losses, one data point in the Q2 financial report stands out: as of June 30, 2025, TMTG's financial assets have soared to $31 billion, with a nearly 800% year-over-year increase. The primary reason for this surge is the comprehensive advancement of its Bitcoin strategy. The company raised $24 billion in dedicated funding for cryptocurrency asset allocation and held approximately $20 billion in Bitcoin assets in July, making it one of the world's sixth-largest publicly traded Bitcoin holding companies.

Notably, despite the rapid asset growth, TMTG's core revenue has remained weak. According to publicly available information:

· The company's revenue in 2023 was $4.1 million, with a loss of $325 million;

· Annual revenue in 2024 dropped to $3.6 million, with losses expanding to $400.9 million.

The significant losses over these two years reflect TMTG's substantial challenges in its business model, user growth, and monetization capabilities. While relying on Trump's brand recognition for traffic attraction, TMTG lags far behind mature social platforms like X (formerly Twitter) in advertising revenue, struggling to attract stable advertisers and long-term investors.

To some extent, TMTG is attempting to compensate for the stagnant core business growth through the high-volatility "financial engine" of cryptocurrency assets.

In June 2025, TMTG submitted a registration to the U.S. Securities and Exchange Commission (SEC), planning to issue over 84.65 million shares of common stock, with a valuation of up to $12 billion, showcasing a strong capital operation ambition. According to the Financial Times, TMTG had planned to raise $3 billion through stock and convertible bond issuance to increase its cryptocurrency allocation, though officially denied, the $24.4 billion financing and ETF registration finalized by the end of May have already provided a tangible validation for this strategy.

Currently, TMTG has submitted multiple ETF product registration documents to the SEC, including the Truth Social Crypto Blue Chip ETF, Truth Social Bitcoin and Ethereum ETF, and Truth Social Bitcoin ETF, signaling a political-led financial productization offensive on the horizon.

Market Valuation: Cautious Premium and Market Segmentation

As the valuation logic of "Bitcoin Treasury Companies" such as MicroStrategy and Semler Scientific is gradually accepted by the market, the valuation of TMTG as a "political crypto hybrid" has also attracted attention. Greg Cipolaro, Global Head of Research at NYDIG, pointed out in a report on June 6 that the "equity premium to net asset value (NAV)" for TMTG (DJT) and Semler Scientific (SMLR) is the lowest, at -16% and -10%, respectively. When the price of Bitcoin rose to $108,500 in June, MicroStrategy's stock price increased by nearly 5%, while the stock prices of TMTG and SMLR remained almost unchanged.

The market evidently has not yet developed sufficient confidence in TMTG's crypto strategy, driven by concerns over both the uncertainty of its early exploratory stage and the avoidance of its political risk exposure. In the current highly financialized crypto market, whether highly politicized participants like TMTG can break away from the shadow of the "Trump concept stock" and earn recognition based on financials and assets raises significant doubts.

The Two Ends of Defense and Offense in the Crypto Field: From ETFs to Comprehensive M&A

In addition to the Bitcoin treasury strategy, TMTG's offensive in the crypto ecosystem is becoming increasingly diversified. The company recently signed a non-binding agreement with Crypto.com, planning to launch a series of ETFs covering digital assets and securities in the United States. The initial products are expected to cover mainstream assets such as BTC, ETH, SOL, XRP, and plan to expand to European and Asian markets in the future, with Crypto.com providing underlying infrastructure and custody services.

At the same time, TMTG is in talks with the crypto exchange platform Bakkt regarding an acquisition. Bakkt, incubated by the Intercontinental Exchange, had its former CEO Kelly Loeffler serve as co-chair of the Trump Inaugural Committee, adding a strong political color to the potential transaction. After the news of the transaction was released, Bakkt's stock price surged over 162% in a single day, and TMTG's stock price also rose significantly.

Furthermore, the executive team of TMTG has started a new SPAC company called Renatus Tactical Acquisition Corp I, planning to raise $179 million through an IPO and private placement to acquire companies in the cryptocurrency, blockchain, secure computing, and dual-use technology sectors. Its CEO is Eric Swider, a member of TMTG's board of directors, the chairman of the board is the current CEO of TMTG, Devin Nunes, and COO Alexander Cano also has a TMTG background. The leadership of Renatus Tactical overlaps significantly with TMTG and may have strategic synergies. It is worth noting that appointments by the Trump administration to regulatory bodies such as the SEC and the Department of Justice may influence the review of such M&A transactions.

Currently, TMTG is trying to break away from the traditional media company's single trajectory, no longer satisfied with relying on social media platforms for traffic monetization, but attempting to transform the political potential carried by the "Trump" brand into capital leverage in the crypto financial market. By increasing its Bitcoin holdings, laying out ETF products, and getting involved in blockchain and asset management, TMTG is deeply embedding itself in the high-volatility track where technology and finance intersect. In the process of the increasingly "institutionalized" and "institutionalized" narrative of crypto, this highly politicized hybrid entity is also seizing its own dividend zone.

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