Auditor Casts Doubt on Trump Media’s Future Amid $58 Million Loss

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Trump Media and Technology Group, the company behind Truth Social, reported a big loss of $58.2 million in 2023. This news raised concerns from auditors about whether the company can keep going. The report also showed that the company made $4.1 million in total revenues but had to pay over $39 million in interest, which was its biggest expense.

An accounting firm from Colorado, BF Borgers CPA PC, has been working with Trump Media since 2022. In a note dated March 25, they said the company’s losses make it uncertain if they can keep operating.

Upon its debut on the Nasdaq stock exchange under the symbol DJT, Trump Media’s stock price experienced a surge. However, on Monday, the shares plummeted by more than 21% to $48.66. This drastic drop in value led to the company’s total worth plummeting to over $6.5 billion. Trump Media’s CEO, Devin Nunes, reassured investors, stating that the company is debt-free and has a substantial reserve of over $200 million for Truth Social post-merger.

Trump Media knows it will keep losing money as it tries to get more people to use Truth Social and attract advertisers. They think they might need between $5 million and $60 million more to keep going.

At the end of 2023, Trump Media had about $2.6 million in cash but owed $70.1 million. The company got $300 million from merging with Digital World Acquisition Corp.

Former President Donald Trump holds a significant number of shares in the company, but he is legally bound from selling them for the next six months. However, if he were to sell them after this period, it could potentially lead to a substantial decrease in the company’s overall value.

Experts think the company’s stock will fluctuate a lot because of worries about what might happen with Trump’s legal and political problems. One expert said people buy Trump Media’s stock not because they think it will make them money but because they like Trump and want to support him.