Increasing Loss, Trump's Truth Social Loses IDR 1.14 Trillion Since Launch

The former President of the United States, Donald Trump, has suffered a loss of  73 million US dollars to Truth Social. (photo: twitter @TrumpDailyPo)

JAKARTA -- The Truth Social social media platform owned by the former President of the United States, Donald Trump, has suffered a loss of  73 million US dollars (IDR 1.14 trillion)  since it was launched in early 2022. This is known  according to a securities filing by Digital World Acquisition Corp (DWAC .O), a company that plans to merge with Truth Social.

Trump's launch of the social media app was announced in October 2021, with claims that the platform would "take a stand against Big Tech companies" such as Twitter and Facebook, which had previously banned Trump's activities on their platforms.

In 2022, Truth Social recorded a loss of 50 million US dollars (IDR 785.4 billion), with net sales of only 1.4 million US dollars (IDR 21.9 billion). They also lost  23 million US dollars (IDR 361.3 billion) in the first half of this year, with net sales of  2.3 million US dollars (IDR 36.1 billion).

Independent public accounting firm Trump Media & Technology Group (TMTG) stated that the financial condition raises substantial doubt about its ability to continue operating.

"TMTG believes that it may be difficult to raise additional funds through traditional financing sources without material progress toward completion of its merger with Digital World," the filing said.

The company also cut several positions in March, following a review of all departments, most significantly affecting TMTG's video on demand streaming and infrastructure teams.

With losses continuing to mount, Truth Social faced major challenges in maintaining operational continuity and obtaining additional funding.