Trump Media & Technology Group Corp continues to face mounting pressure as its stock remains under intense scrutiny following a dramatic collapse from previous highs. After losing roughly 70 percent of its value since early 2025 and nearly 90 percent from its peak, the company is still confronting serious financial and strategic challenges that raise questions about its long term sustainability.
Recent quarterly results highlight the ongoing difficulties. Revenue in the third quarter of fiscal 2025 declined year over year, slipping to just under one million dollars. For a company that once traded at premium valuation multiples driven by market hype, shrinking top line performance signals weakening momentum. At the same time, net losses expanded sharply compared to the prior year period, underscoring the widening gap between operational ambitions and financial reality.
One of the most pressing concerns remains share dilution. Over the past twelve months, diluted shares outstanding increased by more than 38 percent. While early stage companies often issue shares to raise capital, the scale of dilution significantly reduces shareholder value and creates additional pressure on any future earnings growth. Even if profitability were to improve, earnings per share would need to expand substantially just to offset the pace of new share issuance.
The company’s cryptocurrency strategy has added another layer of volatility. According to regulatory filings, Trump Media held more than eleven thousand Bitcoin on its balance sheet as of late 2025, along with a substantial position in Cronos tokens. Since then, cryptocurrency markets have experienced notable declines, with Bitcoin dropping from levels above 110000 dollars in late 2025 to significantly lower trading ranges in early 2026. The markdown in digital asset valuations represents hundreds of millions of dollars in unrealized losses on paper, directly impacting the company’s balance sheet strength.
In addition to holding crypto assets, the company announced plans to distribute digital tokens to eligible shareholders, introducing further speculative elements into its business model. While such initiatives may attract short term investor interest, token based rewards carry significant uncertainty in terms of long term value retention.
Valuation metrics remain stretched despite the stock’s decline. Traditional measures such as price to earnings and price to free cash flow are not meaningful due to persistent losses. Even when assessed using price to sales, the ratio remains elevated compared to industry peers, particularly given the company’s limited revenue base.
The proposed all stock merger with fusion energy firm TAE Technologies adds another speculative dimension. Fusion power holds transformative potential for global energy markets, but commercial viability remains years away. Integrating a social media platform, cryptocurrency investments, and advanced fusion research under one corporate structure introduces operational complexity and execution risk.
With limited revenue growth, rising losses, significant dilution, volatile crypto exposure, and an ambitious merger strategy, Trump Media & Technology Group continues to operate in a high risk environment that demands careful scrutiny from market participants.
