Finance

Trump Media Stock Plunges After $54.8M Loss: Can Bitcoin and Truth Predict Turn the Tide?

TMTG’s $54.8M loss caused stock to drop, despite Bitcoin investment and new prediction market.

November 7, 2025, 2:44 PM

The TMTG app logo is displayed prominently on a smartphone screen against a bright blue field. By jackpress / Shutterstock.com.

Executive Summary

Trump Media & Technology Group (TMTG) reported a net loss of $54.8 million in the third quarter of 2025, marking its third consecutive quarterly loss and causing its stock (DJT) to fall significantly.

Despite a $2 billion investment in Bitcoin and Bitcoin-related securities earlier in the year, which generated some income, these returns were insufficient to offset TMTG’s overall losses.

TMTG plans to launch a new prediction market platform called Truth Predict, in partnership with Crypto.com, as a strategic move to capitalize on growing interest in cryptocurrency and event betting.

The Story So Far

Trump Media & Technology Group (TMTG) is facing significant financial challenges, marked by its third consecutive quarterly net loss and a plummeting stock price, which its substantial $2 billion Bitcoin investment earlier in the year failed to fully offset due to cryptocurrency depreciation and other factors. To counter these losses and capitalize on evolving market trends, the company is strategically expanding into prediction markets with its new Truth Predict platform, a move that aligns with Donald Trump’s promotion of pro-crypto policies and the broader family’s investments in the burgeoning crypto and prediction market industries, facilitated by recent regulatory developments.

Why This Matters

TMTG’s ongoing financial losses and plummeting stock price signal significant instability, raising concerns about its long-term viability, particularly as its substantial Bitcoin investment has depreciated. The company’s strategic pivot to launch a prediction market platform, Truth Predict, represents a high-stakes attempt to diversify revenue and capitalize on the growing crypto and event betting sectors, aligning with President Trump’s broader pro-crypto initiatives, but its success is crucial for reversing TMTG’s current financial trajectory.

Who Thinks What?

Trump Media & Technology Group (TMTG) attributes its significant net loss to factors including the depreciation of its digital asset holdings and legal fees, while strategically planning to launch a new prediction market platform, Truth Predict, to bolster future financial performance.

Investors reacted negatively to TMTG’s third consecutive quarterly loss, causing the company’s stock (DJT) to plummet to its lowest price in over a year.

President Donald Trump and businesses connected to him are actively promoting pro-crypto policies and investing in the burgeoning crypto sector and prediction market industry.

Trump Media & Technology Group (TMTG) reported a significant net loss of $54.8 million in the third quarter of 2025, marking its third consecutive quarterly loss this year. The announcement caused the company’s stock (Nasdaq: DJT) to plummet to its lowest price in over a year, despite a substantial investment in Bitcoin earlier in the year.

Financial Performance and Market Reaction

The reported net loss, disclosed on Friday, comes despite TMTG holding approximately $3.1 billion in assets. Following the news, DJT stock fell more than 4% to $12.76 at the time of writing, briefly touching $12.70. This marks the first time the stock has traded below $13 since September 2024, with declines of over 16% in the past week and 25% in the last month.

In late July, TMTG, which operates President Donald Trump’s social media platform Truth Social, invested $2 billion in Bitcoin and Bitcoin-related securities. While this generated $15.3 million from Bitcoin-related option premiums and $13.4 million in interest from other holdings during Q3, these returns were insufficient to offset the company’s overall losses.

The company attributed the losses to factors including the depreciation of its digital asset holdings and legal fees stemming from its 2024 SPAC merger. At the time of the $2 billion Bitcoin purchase, the cryptocurrency was trading around $118,000, but has since fallen to approximately $102,324.

Expansion into Prediction Markets

Amidst its financial challenges, Trump Media announced plans earlier this week to launch a prediction market platform called Truth Predict, in partnership with Crypto.com. This new venture will be accessible to users of Truth Social.

The move into prediction markets aligns with a broader trend, as President Trump has actively promoted pro-crypto policies from the White House. Businesses connected to President Trump and his family have also made significant investments in the burgeoning crypto sector and prediction market industry, coinciding with the Commodity Futures Trading Commission (CFTC) paving the way for new retail betting platforms in the U.S.

TMTG highlighted its expansion into the “rapidly growing predictions market” with Crypto.com in its Q3 earnings report, positioning it as a key component of the company’s strategy for future quarters.

Outlook

Trump Media & Technology Group faces continued financial scrutiny following its third consecutive quarterly loss. The company is banking on its new prediction market venture with Crypto.com to bolster its financial performance and capitalize on the growing interest in both cryptocurrency and event betting.