Trump's Bitcoin Investment Shaken by 400 Million Dollar Loss

Bitcoin Crash and TMTG's Loss

The social media platform Truth Social, owned by U.S. President Donald Trump, has suffered a significant financial blow due to the serious value losses in the cryptocurrency market. The company reported losses of more than $400 million, particularly following the drop in Bitcoin.

Sharp Decline in Bitcoin

The leader of the cryptocurrency markets, Bitcoin, faced significant selling pressure recently. On Friday, the Bitcoin price fell to $82,070, deepening the impact of the value loss seen at the end of September. After reaching an all-time high of $126,198 in October, Bitcoin is currently $33.6% below that peak.

Crash of TMTG Stocks

TMTG's stock performance has also been seriously affected by the crypto crash. The company's shares dropped to as low as $10 this week, marking the lowest level in its history. Since the beginning of the year, the stocks have lost 70% of their value, with a loss of around 35% since the end of October. The company aimed for a valuation of over $10 billion post-IPO in March 2024, but its current market value has plummeted to just $2.9 billion.

Aggressive Bitcoin Investment Strategy

TMTG's Bitcoin strategy has also been another factor that has shaken the company's financial structure. Last year, CEO Devin Nunes announced an investment strategy called the "Bitcoin Treasury," which was based on a $2 billion Bitcoin purchase. Although Nunes stated that this move provided financial freedom, the strategy resulted in unexpected losses.

Condition of Other Assets

Additionally, TMTG's results announced at the end of September showed significant losses in the value of approximately $146 million worth of Cronos (CRO) assets. The value of Cronos has nearly halved since the end of September, further deepening TMTG's total losses and worsening the company's financial situation.