Trump Media & Technology Group is considering a plan to spin off Truth Social into a separate publicly traded company, based on reports released this week. This move is being discussed as the company faces mounting losses partly related to its ownership of digital assets. Discussions are ongoing and no final agreement has yet been signed.
Trump’s social truth could stand alone
According to reportsthe company is considering distributing shares of a new Truth Social entity to existing investors. That standalone company could later merge with a special purpose acquisition company, giving it its own stock exchange listing. Discussions are said to be active but still subject to board and shareholder approval.
Truth social has served as the main social platform associated with US President Donald Trump. A spinoff would separate it from the broader corporate structure, which has recently changed direction. By putting the platform in its own vehicle, the company could allow investors to assess its social media activities separately from other ongoing ventures.
Reports note that registration with regulators would be required before a transaction is completed. The structure is still being shaped behind closed doors.
Crypto-related losses add extra pressure
The financial results have cast a shadow on the company’s plans. Based on recent revelations, Trump Media has posted a message net loss of more than $700 million last year, a sharp increase from the previous year. Much of that loss is tied to changes in the value of digital assets and related financial instruments on the balance sheet.
Gain remained modest and hovered around the low millions, while paper losses due to asset revaluations increased. Some of these losses were non-cash items, meaning no money left the company directly. Still, the numbers were significant and weighed heavily on the overall results.
Cryptocurrency exposure has attracted attention because it highlights the risks associated with volatile asset classes. If prices fall, balance sheets can quickly suffer. This impact was palpable in the past reporting period and has determined the financial picture of the company.
Energy deal reshapes business direction
The spinoff talks come after Trump Media agreed to merge fusion energy firm TAE Technologies in a deal worth about $6 billion. That agreement marked a shift from being seen primarily as a social media operator.
Once that merger is completed, the company’s core focus will shift more toward energy development. Truth Social, if separated, would operate independently. Shares in the new social media company could be issued to existing holders before the wider restructuring is completed.
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