Summary

  • Trump Media said it posted its first quarterly profit on the back of crypto-related gains.
  • It reported net income of $409.7 million in the third quarter and revenue of $3 million, though the article said the profit appeared to depend heavily on gains from held assets.
  • Trump Media's share price has shown sharp volatility in line with U.S. political developments, and the company said it is expanding into financial products and cryptocurrencies.

Forecast Trend Report by Period

Trump Media, the social media company tied to U.S. President Donald Trump, posted its first-ever quarterly profit, helped by crypto-related gains.

Bloomberg reported on November 9 that Trump Media & Technology Group said it recorded net income of $409.7 million in the third quarter, compared with a net loss of $54.8 million a year earlier. The improvement was driven by gains from the company's cryptocurrency holdings and other digital-asset-related income.

Third-quarter revenue rose threefold from a year earlier to $3 million. Of that increase, $1.8 million came from subscription services in its media unit. That business includes Truth API, a paid service that gives users faster access to President Trump's social media posts.

Still, revenue from the company's core media business remains small relative to its net income. The return to profit appears to have relied heavily on gains from held assets such as cryptocurrencies, rather than improved profitability in its core operations.

Trump Media shares have shown sharp volatility in response to U.S. political developments. The stock plunged 25% in a single day immediately after Democrats regained control of both the House and Senate in the midterm elections. The drop reflected the possibility that Democrats could intensify congressional investigations into Trump family-linked businesses. The stock is down about 70% this year.

Despite the selloff, the value of President Trump's stake in Trump Media is estimated at about $466 million. The Trump family's total net worth is about $6.4 billion, according to the Bloomberg Billionaires Index. Trump remains the company's largest shareholder through a trust managed by his eldest son.

Trump Media has been expanding beyond social media into financial products and cryptocurrencies. It is also pursuing a merger with fusion company TAE Technologies.

In its earnings release on November 9, the company said it expects the merger with TAE Technologies to be completed before the end of this year. After posting its first quarterly profit on crypto-related gains, attention is turning to how that diversification could affect future results.

Suehyeon Lee