The Truth Social platform launched by former U.S. President Donald Trump has incurred losses of $73 million since its launch in early 2022, according to a stock disclosure from Digital World Acquisition Corp, a special purpose acquisition company planning to merge with the firm. Trump announced the launch of his social media application in October 2021, stating that it would "challenge big tech companies" like Twitter and Facebook after his accounts were previously banned.
In 2022, Truth Social recorded a loss of $50 million with net sales of only $1.4 million. It lost $23 million in the first half of this year with net sales of $2.3 million. According to the disclosure, an independent accounting firm associated with Trump Media & Technology Group (TMTG) indicated that the financial situation raises significant doubts about its ability to continue as a going concern. TMTG stated, "We believe it may be difficult to raise additional funds through traditional financing sources given the lack of meaningful progress toward completing our merger with Digital World."
The disclosure also mentioned that the company eliminated several positions in March.
