The parent company of Truth Social, Trump Media & Technology Group (TMTG), has declared a loss of $54.8 million during the third quarter, as the parent company announced on Monday. The company has pointed out a reduction in revenue levels as one of the major causes of the loss, and this is a major negative development in terms of the earnings that the company has made since its IPO last year.
Trump Media Faces Tripled Losses, Stock Down 70% Overall
The losses of Trump Media have increased almost three times compared to 2024, when they were at $19.2 million. Quarterly revenue also decreased by 3.8% to $972,900 as of September 2025, mainly due to a reduction in paid advertising on the Truth Social platform, the primary source of income.
The poor performance was caused by the poor earnings, and this elicited a strong market response. The stock of TMTG (NASDAQ: DJT) has been losing almost 15% within the last five days and ended up at 13.10 on Friday. The stock has dropped drastically in terms of its value, which was once $43.45, by about 70%, and it is a sharp fall in investor trust.
Even though the shares cooled a notch higher to a pre-market price of $13.36, analysts caution that the general direction is still bearish.
Crypto Strategy Offers a Possible Hedge
The market capitalization of Trump Media is worth about $3.67 billion at its present price. A significant portion of the valuation remains tied to political sentiment and President Donald Trump’s activity on Truth Social, which has frequently spurred speculative movements in the stock.
Other analysts observe that the level at which the stock has stabilized around the 13 mark may point to a short run support. But poor trading volume and absence of new drivers of growth like alliances, product development, or significant user growth makes a turnaround unpredictable in the near future.
In spite of all the dismal revenues, TMTG possesses a large reserve of Bitcoin amounting to about $3.1 billion, comprised of 11,542 BTC. It reported realizing $15.3 million in Bitcoin-related securities option premiums and earning $13.4 million in interest income from other financial instruments.
The company said that these holdings generated a combined realized income amounting to 61.1 million in the year-to-date period up to September 30, 2025.
Analysts argue that Bitcoin exposure might be a key hedge and future source of stock returns, like it has happened to other Bitcoin-holding companies such as Metaplanet and MicroStrategy. The expressions of Trump Media CEO and President Devin Nunes also demonstrated optimism concerning the firm’s crypto-oriented financial approach, which is seen as key to long-term expansion amid existing headwinds.
"Nevertheless, we have the financial future on a huge Bitcoin treasury even with the loss of revenue and a further quarter of reported losses. Now that these financial resources are generating revenue, and we have had two quarters of positive operating cash flow, we are in a good position to implement our mergers and acquisitions plan by acquiring one to several of the crown jewel assets we are currently considering."
The more TMTG invests in digital asset accumulation, the more closely analysts will monitor whether its Bitcoin portfolio will be used to offset operational losses and regain investor trust in the coming months.