Trump Media and Technology Group, which owns President Donald Trump’s social media platform Truth Social, shared last week that it lost $400.9 million last year.
A contributing factor in the losses suffered by the company last year was its annual revenue declining 12% to $3.6 million, according to its earnings report on Friday. It added that a “significant portion” of the revenue decline was due to a change in a revenue-sharing agreement with an advertising partner.
The company said its annual loss was also due to non-cash charges, which included $107.4 million in stock-based compensation and an accounting loss of $225.9 million that was linked to the fair value of derivative liabilities, the earnings report shared.
Publicly traded under the ticker DJT, the company has expanded in recent months, including the addition of a streaming service. It’s also applied for trademarks for a line of exchange-traded funds.
Devin Nunes, the CEO of Trump Media, shared that the company’s goal is to provide investment vehicles that are focused on American energy and manufacturing companies.
Nunes also noted that the company wants to create a “competitive alternative to the woke funds and debanking problems that you find throughout the market.”
President Trump held a significant amount of shares of the company, worth around $4 billion on paper, but he decided to transfer them as a “bona fide gift” to the Donald J. Trump Revocable Trust after his election victory.
The shares that were transferred accounted for more than half of the company’s stock.
Trump created Truth Social after he was banned from other social media sites like Twitter and Facebook following the Jan. 6, 2021, Capitol riot.
Shares of the company closed on Friday at $30.39, down 0.9% for the day. The stock market was closed on Presidents Day.