Trump Media's Truth Social Plummets: Financial Collapse and Bitcoin Pivot

Truth Social's Financial Decline

• 📉 Trump Media's stock has experienced a significant drop, losing 48% of its value since Election Day and 56% since inauguration.
• 💡 This decline occurred despite Donald Trump exclusively using the platform for official communications, indicating the surge was based on hype rather than company health.

Poor Company Performance

• 📊 The company reported a revenue of only $821,000 last quarter, with a substantial loss of $32 million.
• ⚠️ Despite its poor performance, the stock is considered wildly overpriced, suggesting it's a "dead stock walking."

Limited User Base and Traffic

• 📈 Truth Social's daily users have doubled to approximately 359,000, which is described as comparable to a good Twitch stream, not a global platform.
• 🚫 The platform has less than 1% of Twitter's traffic and is significantly smaller than platforms like Reddit or even Blue Sky.

Pivot to Bitcoin Investment

• 💰 Recognizing Truth Social's failure, Trump Media is reportedly raising money to buy Bitcoin.
• 🧩 This strategy is seen as an investment in cryptocurrency rather than a media venture, with the expectation that it could be more profitable in the long run, especially with potential manipulation of cryptocurrency regulations.
• 💬 The move raises questions about why investors don't simply buy Bitcoin themselves rather than through the company as a middleman.