Trump Media plans to spin off Truth Social, with crypto asset losses dragging down company performance

On March 2, it was reported that Trump Media & Technology Group is in talks to spin off its Truth Social platform into an independent publicly traded company. The new entity, SpinCo, plans to merge with special purpose acquisition company Texas Ventures Acquisition III, with shares to be distributed to existing shareholders. The company stated that negotiations are ongoing and no final agreement has been reached.

This spin-off follows Trump Media’s merger agreement with TAE Technologies in December last year, which was valued at over $6 billion and aims to develop utility-scale fusion power plants to supply electricity for AI data centers. The separation will allow the media and energy businesses to focus on their respective development paths.

Financial data shows that Trump Media is projected to incur a net loss of $712.3 million in 2025, up from $400.9 million in 2024. The increased loss is mainly due to unrealized losses on cryptocurrency holdings, including Bitcoin and Cronos, while net sales remained relatively flat at $3.68 million. Despite this, by the end of 2025, the company’s financial assets are estimated to be around $2.5 billion, more than three times the amount at the end of 2024.

In the cryptocurrency sector, Trump Media holds over 11,500 Bitcoin through its fintech brand Truth.Fi and has applied for multiple crypto ETFs, including Bitcoin, Ethereum, and Cronos funds with staking features. The Cronos ETF is closely linked with Trump Media and Yorkville Acquisition. Several ETF applications have been submitted to U.S. regulators but have not yet been approved.

Regarding energy, TAE Technologies has raised over $1 billion to develop advanced fusion technology aimed at reducing radioactive waste. After merging with Trump Media, a fusion energy-focused publicly traded company will be created, offering investors a new option beyond media.

Analysts note that despite slow user growth on Truth Social and competition from major social networks, the company’s total assets have increased significantly year-over-year, mainly driven by appreciation in crypto assets and related securities. Investors should monitor the progress of the spin-off and potential ETF approvals to assess future market opportunities.