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Net loss approaches 600 billion won in Q1 this year
The parent company of Truth Social, the social networking service (SNS) used by former U.S. President Donald Trump, incurred a deficit due to a failed cryptocurrency investment.
Bloomberg reported on the 9th (local time) that Trump Media & Technology Group's (hereinafter referred to as Trump Media) net loss for the first quarter of this year was tallied at $405.9 million (approximately 594.8 billion won).
Trump Media is the parent company of Truth Social, the SNS created by President Trump. It was established after Twitter (now X) suspended President Trump's account in 2021.
The company's adjusted operating loss before depreciation and amortization (EBITDA) was $387.8 million, approximately doubling the deficit from the same period last year.
The cause of the deficit in the first quarter of this year is cited as failed cryptocurrency investments.
According to The Guardian, Trump Media announced last year, when Bitcoin prices were soaring, that it would create a 'Bitcoin Treasury' by purchasing $3.5 billion worth of Bitcoin. In particular, it was confirmed that in July last year, Bitcoin was purchased at an average of $108,519 per coin.
However, cryptocurrency prices plummeted at the beginning of this year, and Trump Media sold 2,000 Bitcoins in February this year when the price was below $70,000.
Trump Media explained that most of the losses were non-cash losses, including unrealized losses on digital assets and equity securities, unpaid interest, and stock-based compensation.
Amidst this, a decline in stock prices and the resignation of the CEO also overlapped.
Devin Nunes, the former U.S. federal representative who was the CEO of Trump Media, resigned on April 22.
The company's stock price, which was $97.54 per share at the beginning of 2022, has now fallen to around $8.93, becoming one-tenth of its value in four years.
The Trump family has shown particular interest in cryptocurrencies, with the President's eldest son, Donald Trump Jr., and second son, Eric Trump, co-founding 'American Bitcoin,' a Bitcoin mining and stockpiling company.
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