Digital World Acquisition, the company behind the former president donald trumpTrump’s online platform Truth Social lost nearly $6.5 million in the first half of 2022 as the company warns of Trump’s potential “negative” impact on business.
Trump launched Truth Social in February, more than a year after being banned from most social networks sites including Facebook and Twitter in the aftermath of January 6, 2021, when a crowd of his supporters – partly motivated by his unfounded claims of widespread voter fraud in the 2020 presidential election –United States Capitol riot in a failed effort to force Congress block the president Joe BidenElectoral College victory.
The social media platform has been used by many conservatives as an alternative to Twitter, which they have accused of censoring them, as well as Trump’s main means of communication with his supporters in recent months. However, his the launch was plagued with financial and legal problems.
The company’s latest filings with the U.S. Securities and Exchange Commission (SEC) outline its latest potential setbacks. According to the filing, the company lost a net amount of $6,225,776 from January to June 2022.
Shares of Digital World Acquisition have also fallen in recent months. In March, its stock price peaked at $97.54 per share, but fell to $27.52 per share on Friday. This equates to an almost 72% drop in the company’s stock price.
In a filing with the SEC, the company warned of how the former chairman could further damage its operations in the future.
“If President Trump becomes less popular or if there are new controversies that damage his credibility or people’s desire to use a platform associated with him, and from which he will benefit financially, the results of TMTG’s operations, as well as the outcome of the proposed business combination, could be adversely affected,” the filing said.
Newsweek has contacted Digital World Acquisition for comment.
Trump, in a Truth Social article on Saturday, disputed reports that the platform was facing financial problems.
“The Fake News Media is devastated by how the TRUTH is doing it, at exactly the right time, working overtime to criticize and belittle it. In fact, many big guns in Washington, DC, are fighting for stop the TRUTH but, won’t succeed. They go after the outside financial corporation, and pretty much everyone who walks and breathes, but it won’t. They said it’s been getting worse since the Raid, but in makes it MUCH better, up to over 550%. We all love the TRUTH!!!” he wrote.
Still, Truth Social has taken a number of recent hits.
On Thursday, the U.S. Patent and Trademark Office denied Trump’s request to trademark the “Truth Social” name because two other companies are already using the same wording, according to a report by Axios. The company is also facing an investigation into whether it and Trump negotiated before going public, which could constitute a crime, according to Axios.
Despite these setbacks, downloads for Truth Social skyrocketed earlier in august after FBI agents raided the former president’s Mar-a-Lago residence to retrieve White House documents containing sensitive information. Trump said at the time that the search was part of a larger partisan “witch hunt” targeting him and his family, and denied any wrongdoing.