Trump Contemplates Selling His $2 Billion Investment in Truth Social Platform
Trump Media and Technology Group (TMTG), the parent company of Truth Social, has made headlines with a strategic move to sell company stock and convertible bonds to fund a $2.5 billion purchase of bitcoin. This move, if successful, would make TMTG one of the largest corporate holders of bitcoin.
The decision comes at a time when TMTG's stock has experienced significant volatility, currently valued well below its 2022 peak. As of mid-August 2025, the stock price hovers around $17.60 to $18.50, showing short-term fluctuations and a downward trend forecast over the next few months, with predictions of a possible 30% decline within three months to a range between $10.26 and $13.80.
The company's financials show currently low revenues (around $3.4 million with expected 90% growth) but relatively high debt of about $50 million, with a debt/equity ratio near 24%, which is considered manageable. However, TMTG is considered overvalued by traditional metrics, with enterprise-to-revenue multiples far exceeding typical social media companies, contributing to cautious investor sentiment.
Key Stakeholders
Investors
Investors face notable volatility and risk due to overvaluation and uncertain growth. Some short-term analysts have recommended cautious approaches, with downgrades from buy to hold/accumulate. The planned bitcoin purchase and stock sale could dilute shares but also potentially enhance asset backing if bitcoin gains value.
Company
Access to capital from stock sales and bonds may fund new initiatives and improve financial stability, but execution risk is high given past operational challenges, including leadership turnover and platform difficulties.
Users and Employees
Political associations and operational issues have led to hiring difficulties and platform challenges, which may affect the company's growth prospects and user engagement.
Notable individuals with significant stock holdings in TMTG include Devin Nunes, the CEO of TMTG and nominee for the Intelligence Board, who holds more than $20 million worth of stock, and Attorney General Pam Bondi, who owns approximately $2 million worth of shares. Donald Trump himself holds nearly 115 million shares, accounting for about 53% of the total shares.
The quality of TMTG's technology is questionable, with experts warning that TMTG's publicly traded status offers easy avenues for special interests and foreign investors to engage in unofficial favor trading. There are also concerns about potential conflicts of interest due to TMTG's ties to the President.
Last year, TMTG reported a loss of over $400 million. Despite Trump's insistence that he won't sell his shares in the company, he has been allowed to do so since September of last year. Other high-profile figures, including Bondi and Nunes, may choose to sell their shares in the future.
In January 2025, Secretary of Education Linda McMahon was gifted $826,000 worth of shares in TMTG, and FBI Director Kash Patel received $826,000 worth of shares at the start of the year.
Investing in TMTG seems to be primarily driven by a desire to be associated with or support Trump. However, stakeholders should closely monitor market trends, company performance, and broader cryptocurrency impacts to evaluate long-term value.
- Gizmodo reports that TMTG's strategic move to sell company stock and convertible bonds to acquire bitcoin could signal a shift towards technology investments in the tech-focused future.
- As investors closely monitor the company's volatile stock, business analysts are divided on the potential of TMTG's technological venture, with some advocating cautious investing due to concerns about overvaluation, operational challenges, and potential conflicts of interest.
- The future of TMTG's finances relies heavily on the success of its strategic move, with the proceeds from stock sales and bond conversions likely to influence its technology development and investment in bitcoin, potentially determining the company's position in the finance and investing landscape.
