Trump's SNS Records 600 Billion Won Loss After Failed Bitcoin Investment

Purchased at Peak, Sold During Downturn

Poor Performance and Falling Stock Price Compound Troubles

The parent company of U.S. President Donald Trump's social networking service (SNS), Truth Social, has recorded a loss of approximately 600 billion won due to failed cryptocurrency investments.

U.S. President Donald Trump is handling a smartphone in the White House Oval Office. Photo by AP

On May 9 (local time), Bloomberg reported that Trump Media & Technology Group (Trump Media), the parent company of Truth Social, posted a net loss of 405.9 million dollars (about 594.8 billion won) in the first quarter of this year. The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was a loss of 387.8 million dollars (about 568.3 billion won), further widening the deficit compared to the same period last year.

The main reason for the first-quarter deficit was cited as failed cryptocurrency investments. The Guardian pointed out that Trump Media announced its intention to create a "Bitcoin Treasury" by purchasing 3.5 billion dollars (about 5.1292 trillion won) worth of Bitcoin last year, when Bitcoin prices were soaring. In particular, it was confirmed that in July of last year, the company acquired Bitcoin at an average price of 108,519 dollars per coin (about 15.903 million won).

However, at the beginning of this year, cryptocurrency prices plummeted, and Trump Media sold 2,000 Bitcoins in February when the price was below 70,000 dollars (about 10.258 million won) per coin. Trump Media explained that most of the losses were non-cash losses, mainly from unrealized losses on digital assets and stock securities, unpaid interest, and stock-based compensation.

In addition, the downward trend and a stock price crash led to the resignation of the CEO. Devin Nunes, former U.S. Representative and former CEO of Trump Media, resigned on April 22, and the company's stock price fell to around 8.93 dollars per share (about 13,000 won). In early 2022, the stock price was 97.54 dollars per share (about 143,000 won), meaning it has fallen to one-tenth of its value in four years.

Trump Media's SNS, Truth Social, was created after X (then Twitter) suspended President Trump's account in 2021. Truth Social has mainly targeted conservative users. However, the company has faced difficulties in expanding its business due to competition with major SNS platforms and a slowdown in user growth.

Meanwhile, President Trump's family continues to show great interest in cryptocurrency. The president's eldest son, Donald Trump Jr., and second son, Eric Trump, have jointly founded 'American Bitcoin,' a company focused on Bitcoin mining and storage.

This content was produced with the assistance of AI translation services.