Donald Trump’s $2.3 Billion Stake in Truth Social: A Potential Sale Amid Falling Stock Prices

 

In the fast-moving world of social media startups, few names have generated as much controversy and attention as Truth Social, the social media platform launched by former President Donald Trump. Initially marketed as a conservative alternative to platforms like Twitter and Facebook, Truth Social was poised for success after its 2021 launch. But as stock prices fall and challenges mount, rumors have emerged that Trump could sell his stake in the company. The potential sale of his $2.3 billion investment has sent ripples through both the political and financial landscapes, prompting questions about the future of Truth Social and its place in the broader digital ecosystem.

A Brief History of Truth Sochial

Truth Social was founded by Trump Media & Technology Group (TMTG), a company created by former President Trump following his ban from Twitter in January 2021. The platform was intended to serve as a space for free speech and to combat the influence of what Trump and his supporters saw as biased censorship from mainstream tech giants. In the months following its launch, Truth Social quickly became a rallying point for conservative voices who felt marginalized by traditional social media platforms.

To further expand the platform’s reach and financial capabilities, Truth Social went public in 2024 by merging with Digital World Acquisition Corp. (DWAC), a special purpose acquisition company (SPAC). The merger was touted as a way to raise capital for Truth Social’s ambitious plans, and it briefly sparked excitement in the stock market. At its peak, shares of the merged entity were trading at impressive levels, and Trump’s 114.75 million shares were valued at around $6.2 billion.

However, despite the initial enthusiasm, the platform has faced mounting challenges in achieving long-term growth. Truth Social’s user base has remained relatively small compared to its competitors. By 2024, Truth Social had approximately 7.7 million visits, while Twitter (now rebranded as X) had a staggering 6.1 billion visits, showcasing the massive gap between the two platforms in terms of user engagement.

Stock Performance: A Declining Trajectory

Truth Social’s financial performance has also raised significant concerns. In its first full year of operation, TMTG reported heavy losses, with the company posting a net loss of $58.2 million for the year. Revenue, which largely relied on advertising and subscriptions, was a meager $4.13 million in 2023. These numbers fell far below expectations, and they have left many investors questioning whether the platform can ever turn a profit.

Adding to the uncertainty, an auditor’s report from early 2024 cast a shadow over the company's long-term viability. The report flagged “substantial doubt” about Truth Social’s ability to continue as a going concern without a major turnaround in its financial situation. This news sent the stock price into a tailspin, with shares falling dramatically from their previous highs.

As of early 2025, Trump’s stake in the company is now worth approximately $2.3 billion, a far cry from its initial valuation of $6.2 billion. With the stock price continuing to decline, the value of his holdings has been significantly eroded. This downturn has led many to speculate whether Trump, who once declared that he had no intention of selling his shares, might now consider divesting his stake to cut his losses.

Why Is Trump Considering a Sale?

The question on everyone’s mind is whether Trump will indeed follow through with the sale of his stake in Truth Social. While Trump has previously stated that he has no financial need to sell his shares, several factors may be pushing him to reconsider his position.

First, there’s the ongoing decline in the stock price. As mentioned, Trump’s stake has lost billions in value, and this downward trajectory seems unlikely to reverse anytime soon. With the company struggling to reach profitability, it’s understandable why Trump might want to cut his losses, especially if he believes the platform’s prospects have dwindled.

Second, Trump’s involvement with Truth Social has always been intertwined with his political brand. However, as he continues his political career and faces increasing legal battles, his attention may be diverted away from the platform. The public perception of Truth Social, which was initially seen as a crucial tool for his supporters, has been tarnished by the platform’s struggles, and the former president may no longer see the same value in holding onto a financial stake that could become more of a liability.

Additionally, it’s worth noting that Trump’s political activities are likely to continue drawing significant attention and resources. If he is indeed considering a 2024 presidential run, he may prioritize campaign funds over his investments in social media. Selling off his stake in Truth Social could provide him with the liquidity necessary to fund his political ambitions.

Implications of a Sale

If Trump does decide to sell his stake in Truth Social, the implications could be far-reaching. For one, the sale would likely signal the end of Truth Social’s aspirations as a major player in the social media landscape. The company has already struggled to gain traction, and the loss of its high-profile founder could make it even harder to attract users and investors.

Moreover, a sale could lead to further instability in the company’s stock price. As Trump’s shares are among the largest held by any individual, selling them off could flood the market with stock, causing the price to drop even further. This could prompt other investors to sell their holdings, resulting in a downward spiral that could make it even harder for Truth Social to recover.

The potential sale also raises broader questions about the future of conservative media ventures. Truth Social was conceived as a platform for conservatives who felt censored by mainstream social networks, but it has struggled to deliver on that promise. If Trump’s sale marks the end of his involvement with the platform, it may leave a vacuum in the market for a truly viable alternative to Twitter and Facebook.

The Road Ahead for Truth Social

As the possibility of Trump selling his $2.3 billion stake looms, the future of Truth Social remains uncertain. While the platform has certainly made its mark in the political and media world, it faces formidable obstacles that may be insurmountable without significant changes. Whether or not Trump decides to divest, the platform’s ability to turn a profit and achieve long-term sustainability is now in question.

Investors, political observers, and users alike will be watching closely as developments unfold. Will Trump’s exit from Truth Social mark the end of the company’s brief run, or could it signal a new chapter for the platform? Only time will tell.