Trump Media & Technology Group Considers Major Restructuring with Truth Social Spin-Off
Trump Media & Technology Group (TMTG), the company founded by former US President Donald Trump, is actively pursuing a significant business reorganization. The firm confirmed on Friday that it is engaged in discussions with TAE Technologies and Texas Ventures Acquisition III regarding a proposed deal to spin off its flagship social media platform, Truth Social, into a separate publicly traded company.
Strategic Separation of Social Media and Energy Ventures
This strategic move aims to cleave TMTG's social and digital media operations from its recently announced fusion energy venture. If finalized, the plan would result in the creation of two distinct publicly traded entities, each pursuing different market strategies and growth trajectories. According to details shared by Reuters, under the proposed arrangement, eligible TMTG shareholders would receive shares in the new company dedicated to Truth Social. Subsequently, this new entity is expected to merge with a special purpose acquisition company (SPAC) to facilitate its public listing.
Financial Performance Highlights Challenges and Assets
The parent company of Truth Social disclosed a substantial widening of its net loss, which reached $712.3 million in 2025. This figure marks a significant increase from the $400.9 million loss reported a year earlier. TMTG attributed this escalation primarily to unrealized losses stemming from its investments in bitcoin and Cronos, highlighting the volatility associated with such cryptocurrency holdings.
Despite these losses, TMTG concluded the 2025 fiscal year with approximately $2.5 billion in financial assets. This represents a more than threefold increase from the $776.8 million held at the end of 2024, indicating a strengthened balance sheet in terms of liquid resources. Net sales showed a marginal uptick, rising slightly to $3.68 million from $3.62 million in the previous year, as reported by Reuters.
Background and Expansion Challenges
Founded by Donald Trump and best known for the Truth Social platform, which targets conservative audiences, TMTG has encountered considerable hurdles in expanding its media business. The company faces intense competition from larger, established social networks and has struggled with inconsistent user growth. In response to these challenges, TMTG is now seeking to diversify beyond its core platform, aiming to capture investor interest in emerging sectors, particularly advanced energy technologies.
It is important to note that TMTG has clarified no definitive agreement has been reached on the spin-off proposal, and negotiations remain ongoing.
Shift Toward Fusion Energy and Previous Deal
This potential restructuring follows a significant strategic pivot announced in December, when TMTG agreed to merge with TAE Technologies in an all-stock transaction valued at over $6 billion. This merger signaled a decisive shift toward the fusion energy sector, with plans to establish a publicly traded company focused on developing utility-scale power plants. The initiative is designed to address rising electricity demands, including those generated by the expansion of artificial intelligence data centers.
TAE Technologies, a California-based private firm, is at the forefront of developing advanced nuclear fusion technology. The company has successfully raised more than $1 billion from a consortium of investors, which includes industry giants such as Alphabet's Google and the energy corporation Chevron.
