Bitcoin News Today: TMTG Posts $20M Net Loss Amid Legal Costs and Bitcoin Investments Drives 800% Asset Growth

Trump Media & Technology Group (TMTG), the parent company of Truth Social, reported a net loss of $20 million for the second quarter of 2025, an increase of $3.6 million compared to the same period in 2024. The loss was primarily driven by non-cash expenses, including $20.5 million related to stock-based compensation, depreciation, amortization, interest, and income taxes [1]. Despite the net loss, the company reported a 5.5% year-over-year increase in net sales, reaching $883,300 [1].

TMTG recorded an operating loss of $43.5 million in Q2, partially offset by $16.8 million in interest income and $11.1 million in investment income. The firm also reported $4.1 million in interest expenses during the quarter [1]. However, the company managed to achieve a positive operating cash flow, with $2.3 million generated from operating activities [4].

A major factor contributing to TMTG’s balance sheet expansion was its Bitcoin treasury strategy. The firm raised approximately $2.4 billion through a private placement backed by around 50 institutional investors [1]. Of this, about $2 billion was allocated to Bitcoin and Bitcoin-related securities, giving TMTG one of the largest Bitcoin treasuries among public companies [1]. The company highlighted that this strategy allows investors to gain indirect exposure to cryptocurrencies, generates investment income, and supports future expansion while enhancing financial resilience [1].

As of Q2 2025, TMTG held approximately $3.1 billion in financial assets, an 800% year-over-year increase [1]. The firm’s liquidity and low cash burn rate are seen as key enablers for expansion plans, including the enhancement of existing platforms and the launch of new fintech and financial services products. TMTG is also exploring potential mergers and acquisitions [1].

Donald Trump holds a 52% stake in TMTG through a revocable trust, which was valued at approximately $1.9 billion as of July 15, 2025 [1]. However, TMTG shares have declined roughly 50% year-to-date [1]. Legal costs, particularly those related to the 2024 merger with Digital World Acquisition Corp., also significantly impacted Q2 results. The firm incurred approximately $15 million in legal expenses, including litigation aimed at recovering merger-related damages from entities it alleges caused delays in the SPAC transaction [1].

TMTG operates Truth Social, a social media platform focused on “free expression amid increasingly harsh censorship by Big Tech,” and Truth+, a TV streaming service. The company is also launching Truth.Fi, a financial technology brand incorporating “America First investment vehicles.” While TMTG does not disclose the total number of Truth Social users, the platform’s public counter shows that Trump has 10.5 million followers [1].

The reported net loss underscores TMTG’s ongoing financial challenges as it balances legal expenses, operational costs, and investor expectations. The company remains focused on leveraging its liquidity and low cash burn rate to support further growth initiatives [1].

Source:

[1] Variety

[2] Yahoo Finance

[3] Cryptopolitan

[4] TheDesk.net

[5] AInvest

[6] WebProNews

[7] MEXC

[8] Stock Titan

[9] Facebook

[10] QuiverQuant