Truth Social’s parent company Digital World Acquisition has lost $6,225,776 from January to June after its stock plunged.
Former President Donald Trump launched the platform in February, over a year after he was banned from Facebook and Twitter following the Jan 6 riots. Trump is an active user himself, which has led conservatives to flock to the app for a censorship-free social media experience.
In March, Digital World Acquisition’s stock prices reached a high at $97.54 a share, but since declined to $27.52 per share as of Friday, equivalent to a 72% loss.
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The company has foretold of possible losses in previous U.S. Securities and Exchange Commission filings. It predicted its success would be closely tied to its founder, Trump’s approval ratings.
“While [Trump Media and Technology Group] believes there is sufficient demand for a true free speech platform, the image, reputation, popularity, and talent of its Chairman, President Trump, will be important factors to its success,” one filing stated. “In order to be successful, TMTG will need millions of those people to register and regularly use TMTG’s platform.
“If President Trump becomes less popular or there are further controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, TMTG’s results of operations, as well as the outcome of the proposed Business combination, could be adversely affected.”
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Digital World Acquisition has not made a public comment regarding its losses.
